Abstract
The methods presented in the previous chapters use a system of stochastic difference equations that governs the time path of an economy to find approximations of the policy functions that determine the endogenous variables given the current state of the economy. In this chapter, we switch the perspective from the Euler equations approach to the dynamic programming approach
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© 2024 The Author(s), under exclusive license to Springer Nature Switzerland AG
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Heer, B., Maußner, A. (2024). Discrete State Space Value Function Iteration. In: Dynamic General Equilibrium Modeling. Springer Texts in Business and Economics. Springer, Cham. https://doi.org/10.1007/978-3-031-51681-8_7
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DOI: https://doi.org/10.1007/978-3-031-51681-8_7
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Publisher Name: Springer, Cham
Print ISBN: 978-3-031-51680-1
Online ISBN: 978-3-031-51681-8
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