An approximation technique for computing optimal dynamic paths

✍ Scribed by Hector Sierra; Timothy Condon

• Publisher: Elsevier Science
• Year: 1987
• Tongue: English
• Weight: 854 KB
• Volume: 11
• Category: Article
• ISSN: 0165-1889
• DOI: 10.1016/s0165-1889(87)80015-5

✦ Synopsis

This paper describes a method for approximating optimal dynamic paths when model dimensionality prohibits the solution of the exact optimal trajectory. The method reduces the dimensionality, and hence the computational cost, of the problem by approximating the 'key' relationships of the model. The methodology is tested by computing the actual and the approximated optimal borrowing paths using a dynamic computable general equilibrium model of Thailand.