Model runs indefinitely without converging

[TamerKhraisha]

KrusellSmith

# Construct the economy, make an initial history, then solve 

KSAgent.getEconomyData(KSEconomy) # Makes attributes of the economy, attributes of the agent

KSEconomy.makeAggShkHist() # Make a simulated history of the economy

# Solve macro problem by finding a fixed point for beliefs

KSEconomy.solve() # Solve the economy using the market method. 
# i.e. guess the saving function, and iterate until a fixed point

[TaoWangEcon]

@TamerKhraisha

As an easy fix for you to let the codes to run through, you may want to set a higher tolerance level for the solver. Specifically, put one more line of code before KSEconomy.solve(): KSEconomy.tolerance = 0.01. Currenctly, the default tolerance level is 0.00001. "Tolerance" is the attribute that governs the degree of converenge for the solver of the market class to stop.

But we will try to provide a further explanation when it is understood better why the same configurations that used to work now takes more time to converge.