Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5059822 | Economics Letters | 2013 | 5 Pages |
Abstract
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.
Related Topics
Social Sciences and Humanities
Economics, Econometrics and Finance
Economics and Econometrics
Authors
Lilia Maliar, Serguei Maliar,