Relative size of omega_A and omega_B
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Hi David, hi Cristina,
my estimation requires a steep relationship between the wage and size. I generally get this by making omega_A a lot smaller than omega_B. However, when omega_A is too small/ omega_B is too big, possibly related to their relative size, the solver breaks down. Lowering the alpha helps, but now I'm at xalpha=0.0001 and my are F_params = {'omega_A':0.1, 'omega_B':0.4, 'sigma_A':0.7, 'sigma_B':1.0 , 'Big_A':1.12}. I would like to increase the difference between the omegas even more, but this is making the solver break down quite often. 'omega_A':0.15, 'omega_B':0.5, also works, but I haven't been able to get them further apart than this.
I wanted to know if you had similar problems and maybe see if there is something in the case other than lower alpha that helps. I experimented with increasing the degree too, but that wasn't that helpful.
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