Download This PaperThe Market Resources Method for Solving Dynamic Optimization Problems
15 Pages Posted: 28 Jun 2016 Last revised: 3 Jun 2017
Date Written: June, 2016
Abstract
We introduce the market resources method (MRM) for solving dynamic optimization problems. MRM extends Carroll?s (2006) endogenous grid point method (EGM) for problems with more than one control variable using policy function iteration. The MRM algorithm is simple to implement and provides advantages in terms of speed and accuracy over Howard?s policy improvement algorithm. Codes are available.
JEL Classification: C6, C61, C63, C68
Suggested Citation: Suggested Citation
Kabukçuoğlu Dur, Ayşe and Kabukçuoğlu Dur, Ayşe and Martinez-Garcia, Enrique, The Market Resources Method for Solving Dynamic Optimization Problems (June, 2016). Globalization and Monetary Policy Institute Working Paper No. 274, Available at SSRN: https://ssrn.com/abstract=2801510 or http://dx.doi.org/10.24149/gwp274
Do you have a job opening that you would like to promote on SSRN?
Feedback
Feedback to SSRN
If you need immediate assistance, call 877-SSRNHelp (877 777 6435) in the United States, or +1 212 448 2500 outside of the United States, 8:30AM to 6:00PM U.S. Eastern, Monday - Friday.