The Method of Endogenous Gridpoints for Solving Dynamic Stochastic Optimization Problems

14 Pages Posted: 6 Jul 2005

See all articles by Christopher D. Carroll

Christopher D. Carroll

Johns Hopkins University - Department of Economics; National Bureau of Economic Research (NBER)

Date Written: June 2005

Abstract

This paper introduces a method for solving numerical dynamic stochastic optimization problems that avoids rootfinding operations. The idea is applicable to many microeconomic and macroeconomic problems, including life cycle, buffer-stock, and stochastic growth problems. Software is provided.

Suggested Citation

Carroll, Christopher D., The Method of Endogenous Gridpoints for Solving Dynamic Stochastic Optimization Problems (June 2005). NBER Working Paper No. t0309, Available at SSRN: https://ssrn.com/abstract=741544

Christopher D. Carroll (Contact Author)

Johns Hopkins University - Department of Economics ( email )

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