Using dynamic programming with adaptive grid scheme for optimal control problems in economics

Article Abstract:

An adaptive grid scheme that follows Grune is used to find the global solutions of discrete time Hamilton-Jacobi-Bellman equations, establishing local error estimates and developing an adapting iteration for the discretization of the grid space. The advantage of the use of the adaptive grid scheme is evident after computing the solutions of one- and two-dimensional economic models exhibiting steep curvature, complicated dynamics thresholds separating domains of attraction and periodic solutions. Deterministic and stochastic model variants are considered.

Grid computing

---

Solution of macromodels with Hansen--Sargent robust policies: some extensions

Article Abstract:

The Hansen-Sargent model does not consider simple rules and discretionary solutions, which are the main points of discussions of fiscal and monetary policy. A suggestion is proposed for solution approaches to fill the lacuna. Analysis of the term structure of interest rates complement previous research and suggests that agents be given attributes for robustness. A robust private sector may amplify the same fluctuations in inflation and output and provide a theoretical motivation for central banks for more transparency in their forecasts.

Interest Rates, Analysis, Robust statistics, Robustness (Statistics)

---

Can indeterminacy resolve the cross-country correlation puzzle?

Article Abstract:

Changes in market expectations (esunspotsE) are an important factor in understanding international business fluctuations even as productivity shocks provide another source of uncertainty. An indigenous model with increasing returns, the cross-country consumption correlation is lower than that of output, and international business cycles become positively correlated. When sunspot shocks shift the economy from path to path, price levels can potentially exhibit volatile fluctuations, leading to more volatile trade.

Similar abstracts:

• Abstracts: Dynamic programming with homogenous functions. Tax distortions in a neoclassical monetary economy. Introduction: symposium on economic growth, theory and computations
• Abstracts: Implications of habit formation for optimal monetary policy. Optimal pricing of intraday liquidity
• Abstracts: RussiaEs new policy of cooperation with international financial institutions. The political economy of Russia's accession to the World Trade Organization
• Abstracts: RussiaEs new policy of cooperation with international financial institutions. part 2 Inflation and exchange rate policy
• Abstracts: Optimality of the Friedman rule in economies with distorting taxes. Financial crises as herds: Overturning the critiques

This website is not affiliated with document authors or copyright owners. This page is provided for informational purposes only. Unintentional errors are possible.