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Add MyST assembly for HANKSOME — Siying Li - #54

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Add MyST assembly for HANKSOME — Siying Li#54
Siying99 wants to merge 46 commits into
econ-ark:masterfrom
Siying99:new-HANKSOME-siyingli

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@Siying99 Siying99 commented Feb 23, 2026

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Matsya session identifier

topics2026-siying99-ballpark

Assignment #130 — Matsya, ballpark, and Dolo Plus draft (ARSS)

  • Bellman excerpt markdown (docs/bellman-excerpt.md): Focused extraction of the ARSS household dynamic program (states, controls, shocks, utility, constraints)
  • Improved markdown (docs/bellman-excerpt-SMD-polished.md): Three-stage decomposition (disc, shocks-only, cons-noshocks) following SolvingMicroDSOPs, with perch tables, pipeline, and connectors
  • Dolo Plus draft (docs/dolo-plus-draft.yaml): YAML skeleton based on Matsya's stage decomposition output
  • Verification paragraph (docs/verification.md): Comparison of Matsya output against the paper and SolvingMicroDSOPs

Verification

Matsya's initial stage decomposition treated the household problem as a single stage with arrival, decision, and continuation perches. After comparing with the SolvingMicroDSOPs modular architecture, I rejected the single-stage decomposition and rewrote it as a three-stage period (disc, shocks-only, cons-noshocks), consistent with SolvingMicroDSOPs. I accepted Matsya's identification of the effective state and control variables: since the foreign/home goods split is mechanical given relative prices and hours are set by the union, the household effectively chooses only total consumption c and savings a'. I edited the shock process description: Matsya assumed a generic Markov process, but the ballpark notebook did not specify it; by checking the paper, I confirmed that productivity shocks follow a first-order Markov chain, calibrated as an AR(1) in log income. I also edited the notation to use the SolvingMicroDSOPs perch indicators and defined psi-type vs m-type variables explicitly. The YAML draft was constructed from Matsya's perch decomposition output rather than generated directly by Matsya (YAML generation timed out repeatedly on the server).


Earlier work on this branch

Four-notebook MyST assembly for the Household heterogeneity and the transmission of foreign shocks (de Ferra, Mitman & Romei 2019) ballpark entry:

  • de-Ferra2019-co_intro.ipynb — paper metadata, attribution (SST)

  • de-Ferra2019-co_prior-literature.ipynb — prior literature with MyST citations

  • de-Ferra2019-co_summary.ipynb — summary notebook scaffold with # heading, cross-reference links to prior/subsequent literature, and MyST citation; summary content to be added

  • de-Ferra2019-co_subsequent-literature.ipynb — subsequent literature with MyST citations

  • self.bib, references.bib, subsequent-literature.bib

  • myst.yml with TOC and bibliography configuration

Siying99 and others added 24 commits February 6, 2026 20:15
Co-authored-by: Cursor <cursoragent@cursor.com>
Co-authored-by: Cursor <cursoragent@cursor.com>
Co-authored-by: Cursor <cursoragent@cursor.com>
Co-authored-by: Cursor <cursoragent@cursor.com>
The original images (Figure 3 channel decomposition, Figure 6 monetary
policy) were stripped and replaced with text placeholders. This restores
the base64-encoded cell attachments from the initial commit.

Co-authored-by: Cursor <cursoragent@cursor.com>
Co-authored-by: Cursor <cursoragent@cursor.com>
Co-authored-by: Cursor <cursoragent@cursor.com>
Co-authored-by: Cursor <cursoragent@cursor.com>
- Add portfolio composition / exchange rate revaluation subsection (Sec 1)
- Add g(l) separability argument (Sec 2)
- Add normalization discussion and Gamma=1 note (Sec 3)
- Add explicit mapping from shocks-only stage to SolvingMicroDSOPs portable
- Add FOC/EGM derivation with P_t factor for cons-noshocks stage
- Add exchange rate note in between-period connector
- Expand alternative decompositions with EGM trade-off rationale (Sec 4.3)
- Add normalization and EGM section (Sec 4.4)
- Add 7-step implementation roadmap (Sec 4.5)

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Revised HANKSOME notebook: AI critique + class feedback

Updated deFerra2020_bellman-stages.ipynb to strengthen the clarity, consistency, and correctness of the stage/perch decomposition following an AI critique based on the SolvingMicroDSOPs modular stage architecture (Section 13).

Changes

Section 1 — The paper and its model

  • Added subsection on portfolio composition and exchange rate revaluation: justifies treating total assets $a$ as a scalar (portfolio shares are not a household choice) and explains why exchange rate revaluation is absorbed into $i^a_t$ rather than requiring a separate stage.

Section 2 — Why multiple stages?

  • Added note on $g(l)$ separability: since labor supply is union-set, $g(l_t)$ is an additive constant that does not affect the consumption FOC—supporting the single-control-variable interpretation.

Section 3 — Stage decomposition

  • Added Normalization subsection: explains why normalizing by $P_t$ restores the standard EGM form $c + a = m$, and notes $\Gamma = 1$.
  • Added $\Gamma = 1$ note after the disc stage table.
  • Added explicit mapping to the SolvingMicroDSOPs portable stage after the shocks-only stage: four-point correspondence showing how $(1+i^a)$ maps to $R$, labor income maps to $\theta$, etc.
  • Added FOC/EGM derivation after the cons-noshocks stage: derives the FOC with the $P_t$ factor and shows how normalization restores the consumed-function / endogenous-grid formulas.
  • Added exchange rate note in the between-period connector section.

Section 4 — Comparison with the monolithic formulation

  • Expanded Section 4.3 with a concrete EGM advantage for the shocksonly→consnoshocks ordering.
  • Added Section 4.4 (Normalization and the EGM): consolidates the consumed-function transformation and borrowing-constraint discussion.
  • Added Section 4.5 (Path toward implementation): 7-step roadmap mapping to solve_portable, solve_cons_noshocks, solve_disc, solve_period, including the key structural difference (Markov $s$ requires per-state value functions).

- Add self.bib with de Ferra et al. (2020) BibTeX entry (DOI: 10.1016/j.jinteco.2020.103303)
- Add references.bib with Carroll SolvingMicroDSOPs entry
- Add myst.yml with bibliography configuration
- Convert all plain-text references to DOI links (de Ferra et al.)
  and hyperlinks (SolvingMicroDSOPs) for MyST citation resolution

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MyST-compatible citations and bibliography

Added proper references and MyST bibliography setup for the HANKSOME entry.

New files

  • self.bib — BibTeX entry for the primary paper: de Ferra, Mitman, and Romei (2020), DOI: 10.1016/j.jinteco.2020.103303
  • references.bib — BibTeX entry for Carroll, SolvingMicroDSOPs (2025)
  • myst.yml — MyST project config with bibliography: [self.bib, references.bib]

Notebook citation changes

  • Replaced ScienceDirect URL with DOI link: https://doi.org/10.1016/j.jinteco.2020.103303 — MyST auto-resolves DOI links against the bibliography
  • All mentions of "de Ferra et al." now use DOI-linked citations [de Ferra et al. (2020)](https://doi.org/...)
  • All mentions of "SolvingMicroDSOPs" now link to https://llorracc.github.io/SolvingMicroDSOPs/
  • No remaining plain-text references; all are valid Markdown links that MyST will recognize and resolve

- Copy self.bib and references.bib from de-Ferra2019-co
- Add myst.yml pointing to bib files and bellman-stages notebook
- Use @de-Ferra2019-co pandoc citation syntax throughout notebook
- Link all SolvingMicroDSOPs mentions to llorracc.github.io

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MyST bibliography: using existing de-Ferra2019-co bib files

Copied self.bib and references.bib from the existing de-Ferra2019-co/ ballpark entry into the HANKSOME/ folder, and added a myst.yml pointing to them.

Citation approach

  • The BibTeX key de-Ferra2019-co from the existing self.bib is used throughout
  • All paper references now use pandoc-style @de-Ferra2019-co syntax, which MyST resolves against the bibliography
  • The paper header also includes a DOI link (https://doi.org/10.1016/j.jinteco.2020.103303) as a fallback
  • All SolvingMicroDSOPs mentions link to https://llorracc.github.io/SolvingMicroDSOPs/
  • No plain-text or unresolvable references remain

Siying99 added 19 commits March 23, 2026 19:20
Store session name and Cursor rule so every matsya call uses
--session topics2026-siying99-ballpark automatically.

Made-with: Cursor
Focused markdown extracting the household optimization problem
(states, controls, shocks, utility, constraints) from Shin_ARSS.md
for use with Matsya stage decomposition (assignment #130).

Made-with: Cursor
Update bellman-excerpt.md with AR(1) productivity process.
Add dolo-plus-draft.yaml based on Matsya stage decomposition
(YAML generation timed out on server; drafted from Matsya's
perch decomposition output and canonical patterns).

Made-with: Cursor
Matsya-assisted improvement using SolvingMicroDSOPs Sections 12-13 as
template: adds stage composition diagram, perch table, EGM compatibility
notes, and identity wiring description (assignment #130, step 3.4).

Made-with: Cursor
…tation

Remove LaTeX spacing hacks, use u(c_t)-v(N_t) with explicit formulas
for CRRA utility, labor disutility, CES basket, and demand system.
Add missing parameters (eta, alpha, varphi, psi) to table.

Made-with: Cursor
Use \mid instead of | inside table cells for conditional expectations.

Made-with: Cursor
Replace circle indicator with tilde (~) for the decision perch
to match SolvingMicroDSOPs Sections 12-13 convention.

Made-with: Cursor
- Update stage diagram arrows to use tilde notation
- Replace E_{e'|e} with explicit summation in tables for GitHub rendering
- Use \lbrace/\rbrace instead of \{ \} for GitHub compatibility
- Remove unnecessary braces from subscripts
- Add explanations of B (cntn-to-dcsn) and I (dcsn-to-arvl) abbreviations

Made-with: Cursor
Replace single-stage decomposition with disc / shocks-only / cons-noshocks
pattern matching SolvingMicroDSOPs Sections 4 and 9.2, consistent with
the de Ferra bellman-stages assignment. Add perch tables for each stage,
three-stage period pipeline, and within/between-period connectors.

Made-with: Cursor
- Remove section number reference from intro paragraph
- Use Decision(s) in all perch tables
- Define a_{t+1} = psi_t explicitly, add psi-type vs m-type explanation
- Use E_prec[v_succ] notation in shocks-only table with expanded formula
- Restructure pipeline section to match de Ferra format with connectors

Made-with: Cursor
- Soften Markov/AR(1) claim to match paper (unspecified process)
- Use braces on all subscripts for GitHub rendering
- Move FOC to display math so formulas show correctly
- Remove e' from v_succ argument in shocks-only expectation
- Show E_prec formula as display math with expanded sum
- Replace LaTeX pipeline with text diagram for full visibility

Made-with: Cursor
- Remove claim about paper not specifying process
- Move shocks-only arrival value to display math (GitHub table issue)
- Replace \; with \cdot to avoid semicolon rendering on GitHub

Made-with: Cursor
- Cite paper: e follows first-order Markov chain, AR(1) log income
- Restore v_prec = E_prec[v_succ] in shocks-only table

Made-with: Cursor
Compare Matsya output against paper and SolvingMicroDSOPs:
accepted variable identification, rejected single-stage decomposition,
edited shock process and notation.

Made-with: Cursor
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