Stationary Models with Large Horizon

Abstract

In this book we prefer to place more emphasis, at least from the conceptual point of view, on $\lim \mathop{\mathrm{\mathit{DP_{} } } }\nolimits _{n}$ than on DP _∞ . There are a number of reasons for our approach. We present the general theory for $\lim \mathop{\mathrm{\mathit{DP_{}}}}\nolimits _{n}$ and discuss the optimality equation (Bellman equation) for the limit value function. DPs with infinite horizon are also considered.