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This repository was archived by the owner on Sep 21, 2021. It is now read-only.
I think I found a little typo in Arellano model, although the result wouldn't change much.
To calculate value when default, defval = u(ae, ydef) + β * (θ * EVc[zero_ind, iy] + (1-θ) * EVd[1, iy]), I think EVc should be EV to make it consistent with the theory in the text and the code in Python.