Twisted Probabilities, Uncerntainty, and Prices
This repository contains codes and jupyter notebooks which estimates and demonstrates results of the empirical model in "Twisted Probabilities, Uncerntainty, and Prices" by Lars Peter Hansen, Bálint Szőke and Lloyd S. Han and Thomas J. Sargent. Latest version could be found here.
- main.ipynb is a Python 3 based notebook producing interactive figures accompanying our paper
- single_capital.ipynb is a Julia notebook illustrating and demonstrating our code for solving our model in single capital stock case
- two_capitals.ipynb is a Julia notebook illustrating and demonstrating our code for solving our model in two capital stocks case We have a Binder for users to play with our notebook without setting up files on their local machine:
This project simply requires the Anaconda distribution of Python version 3.6 and Julia 1.0 or higher versions. Additional dependencies and prerequisites are handled automatically in setup.
Installing and activating the environment
Navigate to the folder containing the code and set up the virtual environment necessarily to run our code
For Mac Users, please open the terminal and run the following commands in order
cd /path git clone https://github.com/lphansen/Twisted.git cd Twisted source setup.sh
For Windows Users, please open command prompt (shortcut: Windows+R and type 'cmd'）
cd /path git clone https://github.com/lphansen/Twisted.git conda update conda conda env create -f environment.yml conda activate Twisted cd Twisted
Please replace /path to user designated folder path in both cases.
y to proceed with installation when prompted. You will know that setup has been correctly implemented if the word
(Twisted) contained in parenthesis appears on the current line of your terminal window.
Jupyter Notebook for Interactive Plots in the Paper
To run the notebook, simply use: (Make sure acitivating our virtual python environment "Twisted" and navigating to this folder)
Our notebook interface should show up in the browser and have fun playing with our notebooks!