Envelope condition method versus endogenous grid method for solving dynamic programming problems
- 1 Stanford University; Universitat d'Alacant
Any de publicació: 2013
Número: 7
Pàgines: 1-15
Tipus: Document de treball
Resum
We introduce an envelope condition method (ECM) for solving dynamic programming problems. The ECM method is simple to implement, dominates conventional value function iteration and is comparable in accuracy and cost to Carroll’s (2005) endogenous grid method. Codes are available