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SYNC: update amss.md from lecture-python-advanced.myst#8

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sync-amss-from-source
May 28, 2026
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SYNC: update amss.md from lecture-python-advanced.myst#8
mmcky merged 2 commits into
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sync-amss-from-source

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@mmcky mmcky commented May 27, 2026

Syncs lectures/amss.md with its primary source lecture-python-advanced.myst (see #7 for the source mapping).

The lecture-dp copy was last at the initial-setup version (2026-01-14). Upstream commit 8c84d8da (PR QuantEcon/lecture-python-advanced.myst#312, "Update Tom's edits to AMSS and Calvo Lectures", 2026-02-23) reworked it: restructured the Overview, reworded the AMSS framing, and added a note on the zero-transfers assumption.

After this sync the file is byte-identical to the source. No intersphinx prefixes needed preserving.

🤖 Generated with Claude Code

Brings in upstream commit 8c84d8da (PR #312, "Update Tom's edits to AMSS
and Calvo Lectures"): restructured Overview, reworded AMSS framing, and a
note on the zero-transfers assumption. No intersphinx prefixes to preserve.

Co-Authored-By: Claude Opus 4.7 (1M context) <noreply@anthropic.com>
Copilot AI review requested due to automatic review settings May 27, 2026 23:50
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Pull request overview

Synchronizes lectures/amss.md in lecture-dp with its upstream source (lecture-python-advanced.myst), updating the lecture text/structure to match the latest upstream version.

Changes:

  • Reworked the lecture’s opening by adding a new “Overview” section near the top and removing the old one.
  • Clarified the “zero transfers” assumption by moving the discussion into a dedicated {note} admonition.
  • Minor wording adjustments later in the lecture.

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Comment thread lectures/amss.md
Comment on lines +27 to +35
optimal taxation with state-contingent debt due to Robert E. Lucas, Jr., and Nancy Stokey {cite}`LucasStokey1983`.



In this lecture, we describe how Aiyagari, Marcet, Sargent, and Seppälä {cite}`aiyagari2002optimal` (hereafter, AMSS) modified that model.

In a nutshell, AMSS studied optimal taxation in a version of Lucas and Stokey's environment **without** state-contingent debt.

In this lecture, we
Comment thread lectures/amss.md

In a nutshell, AMSS studied optimal taxation in a version of Lucas and Stokey's environment **without** state-contingent debt.

In this lecture, we
Comment thread lectures/amss.md
Throughout this lecture, we shall set transfers to zero.

```{note}
For some issues about the limiting behavior of debt, this is possibly an important difference from AMSS {cite}`aiyagari2002optimal`. AMSS restricted transfers to be non-negative.
Comment thread lectures/amss.md
This outcome reflects the presence of a force for **precautionary saving** that the incomplete markets structure imparts to the Ramsey plan.

In {doc}`this subsequent lecture <amss2>` and {doc}`this subsequent lecture <amss3>`, some ultimate consequences of that force are explored.
In {doc}`this subsequent lecture <amss2>` and {doc}`this subsequent lecture <amss3>`, consequences of that force are explored.
Pulls in un_insure.md execution fix (#17) so CI passes.
@mmcky mmcky merged commit 5d0773a into main May 28, 2026
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@mmcky mmcky deleted the sync-amss-from-source branch May 28, 2026 03:37
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