Envelope condition method versus endogenous grid method for solving dynamic programming problems

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. •We introduce the e...

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Veröffentlicht in:	Economics letters 2013-08, Vol.120 (2), p.262-266
Hauptverfasser:	Maliar, Lilia, Maliar, Serguei
Format:	Artikel
Sprache:	eng
Schlagworte:	Curse of dimensionality Dynamic programming economics Endogenous grid Envelope condition Labor supply Large scale Mathematical functions Mathematical problems Numerical dynamic programming Studies Value function iteration
Online-Zugang:	Volltext
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