Theory-Informed Neural Networks for Heterogeneous-Agent Macroeconomics: A Generalized Method of Moderation for Consumption under Uncertainty

Analytical buffer-stock bounds in the network’s output layer anchor the learned policy in the high-wealth tail. On the Krusell-Smith testbed, out-of-sample Euler errors are orders of magnitude smaller where capital concentrates.

2025 · Christopher Carroll, Alan Lujan