Article ID Journal Published Year Pages File Type
5059912 Economics Letters 2013 6 Pages PDF
Abstract
► Discrete approximations of continuous distributions is important in numerically implementing economic models. ► Existing methods often fail to match prescribed moments. ► We propose an approximation method based on the maximum entropy principle. ► Our method matches prescribed moments and is very general as well as computationally simple.
Keywords
Related Topics
Social Sciences and Humanities Economics, Econometrics and Finance Economics and Econometrics
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Discrete approximations of continuous distributions by maximum entropy
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