Merge branch 'main' into maint-software

Author: HumphreyYang

.github/workflows/cache.yml

@@ -8,7 +8,7 @@ jobs:
     runs-on: ubuntu-latest
     steps:
       - name: Checkout
-        uses: actions/checkout@v4
+        uses: actions/checkout@v5
       - name: Setup Anaconda
         uses: conda-incubator/setup-miniconda@v3
         with:

.github/workflows/ci.yml

@@ -7,7 +7,7 @@ jobs:
     runs-on: ubuntu-latest
     steps:
       - name: Checkout
-        uses: actions/checkout@v4
+        uses: actions/checkout@v5
       - name: Setup Anaconda
         uses: conda-incubator/setup-miniconda@v3
         with:

.github/workflows/execution.yml

@@ -14,7 +14,7 @@ jobs:
         python-version: ["3.13"]
     steps:
       - name: Checkout
-        uses: actions/checkout@v4
+        uses: actions/checkout@v5
       - uses: conda-incubator/setup-miniconda@v3
         with:
           auto-update-conda: true
@@ -56,7 +56,7 @@ jobs:
         python-version: ["3.13"]
     steps:
       - name: Checkout
-        uses: actions/checkout@v4
+        uses: actions/checkout@v5
       - uses: conda-incubator/setup-miniconda@v3
         with:
           auto-update-conda: true

.github/workflows/linkcheck.yml

@@ -13,15 +13,16 @@ jobs:
     steps:
       # Checkout the live site (html)
       - name: Checkout
-        uses: actions/checkout@v4
+        uses: actions/checkout@v5
         with:
           ref: gh-pages
       - name: Link Checker
         id: lychee
         uses: lycheeverse/lychee-action@v2
         with:
           fail: false
-          args: --accept 403,503 **/*.html
+          # Configuration is now specified in lychee.toml file
+          args: **/*.html
       - name: Create Issue From File
         if: steps.lychee.outputs.exit_code != 0
         uses: peter-evans/create-issue-from-file@v5

.github/workflows/publish.yml

@@ -9,7 +9,7 @@ jobs:
     runs-on: ubuntu-latest
     steps:
       - name: Checkout
-        uses: actions/checkout@v4
+        uses: actions/checkout@v5
       - name: Setup Anaconda
         uses: conda-incubator/setup-miniconda@v3
         with:

lectures/BCG_incomplete_mkts.md

@@ -242,7 +242,7 @@ show up in differences in the two types of consumers’ demands for a
 typical firm’s bonds and equity, the only two assets that agents can now
 trade.
 
-## Asset Markets
+## Asset markets
 
 Markets are incomplete: *ex cathedra* we the model builders declare that only equities and bonds issued by representative
 firms can be traded.
@@ -548,7 +548,7 @@ $C$’s that appear in the pricing functions, then
 - $\check q = q(K,B)$ and
   $\check p = p(K,B)$.
 
-## Pseudo Code
+## Pseudo code
 
 Before displaying our Python code for computing a BCG incomplete markets equilibrium,
 we’ll sketch some pseudo code that describes its logical flow.

lectures/_static/lecture_specific/orth_proj/orth_proj_thm2.pdf

@@ -19,12 +19,13 @@
     \draw[important line, thick]  (Z1) -- (O) node[right] {};
     \draw[important line, thick]  (Py) -- (Z2) node[right] {$S$};
     \draw[important line, blue,->]  (O) -- (y) node[right] {$y$};
+    \draw[important line, blue,->]  (O) -- (Py') node[anchor = north west, text width=5em] {$P y'$};
     \draw[dotted line] (0.54,0.27) -- (0.51,0.33);
     \draw[dotted line] (0.57,0.36) -- (0.51,0.33);
     \draw[dotted line] (-0.22,-0.11) -- (-0.25,-0.05);
     \draw[dotted line] (-0.31,-0.08) -- (-0.25,-0.05);
     \draw[dashed line, black] (y) -- (Py);
-    \draw[dashed line, black] (y') -- (Py') node[anchor = north west, text width=5em] {$P y'$};
+    \draw[dashed line, black] (y') -- (Py');
 \end{tikzpicture}
 
 \end{document}

lectures/_static/lecture_specific/orth_proj/orth_proj_thm2.png

@@ -77,7 +77,7 @@ import matplotlib.pyplot as plt
 from scipy.stats import norm, lognorm
 ```
 
-## A Particular Additive Functional
+## A particular additive functional
 
 {cite}`Hansen_2012_Eca` describes a general class of additive functionals.
 
@@ -123,7 +123,7 @@ initial condition for $y$.
 The nonstationary random process $\{y_t\}_{t=0}^\infty$ displays
 systematic but random *arithmetic growth*.
 
-### Linear State-Space Representation
+### Linear state-space representation
 
 A convenient way to represent our additive functional is to use a [linear state space system](https://python-intro.quantecon.org/linear_models.html).
 
@@ -872,7 +872,7 @@ Notice tell-tale signs of these probability coverage shaded areas
 * the green one for the stationary component $s_t$ converges to a
   constant band
 
-### Associated Multiplicative Functional
+### Associated multiplicative functional
 
 Where $\{y_t\}$ is our additive functional, let $M_t = \exp(y_t)$.
 
@@ -929,7 +929,7 @@ It is interesting to how the martingale behaves as $T \rightarrow +\infty$.
 
 Let's see what happens when we set $T = 12000$ instead of $150$.
 
-### Peculiar Large Sample Property
+### Peculiar large sample property
 
 Hansen and Sargent {cite}`Hans_Sarg_book` (ch. 8) describe the following two properties of the  martingale component
 $\widetilde M_t$ of the multiplicative decomposition
@@ -958,7 +958,7 @@ It remains constant at unity, illustrating the first property.
 
 The purple 95 percent frequency coverage interval collapses around zero, illustrating the second property.
 
-## More About the Multiplicative Martingale
+## More about the multiplicative martingale
 
 Let's drill down and study probability distribution of the multiplicative martingale  $\{\widetilde M_t\}_{t=0}^\infty$  in
 more detail.
@@ -973,7 +973,7 @@ where $H =  [F + D(I-A)^{-1} B]$.
 
 It follows that $\log {\widetilde M}_t \sim {\mathcal N} ( -\frac{t H \cdot H}{2}, t H \cdot H )$ and that consequently ${\widetilde M}_t$ is log normal.
 
-### Simulating a Multiplicative Martingale Again
+### Simulating a multiplicative martingale again
 
 Next, we want a program to simulate the likelihood ratio process $\{ \tilde{M}_t \}_{t=0}^\infty$.
 
@@ -984,7 +984,7 @@ After accomplishing this, we want to display and study histograms of $\tilde{M}_
 
 Here is code that accomplishes these tasks.
 
-### Sample Paths
+### Sample paths
 
 Let's write a program to simulate sample paths of $\{ x_t, y_{t} \}_{t=0}^{\infty}$.
 
@@ -1257,7 +1257,7 @@ These probability density functions help us understand mechanics underlying the
 * Enough mass moves toward the right tail to keep $E \widetilde M_T = 1$
   even as most mass in the distribution of $\widetilde M_T$ collapses around $0$.
 
-### Multiplicative Martingale as Likelihood Ratio Process
+### Multiplicative martingale as likelihood ratio process
 
 [This lecture](https://python.quantecon.org/likelihood_ratio_process.html) studies **likelihood processes**
 and **likelihood ratio processes**.