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Consumption dynamics in general equilibrium: A characterisation when markets are incomplete

โœ Scribed by Pablo Beker; Subir Chattopadhyay


Book ID
113708187
Publisher
Elsevier Science
Year
2010
Tongue
English
Weight
428 KB
Volume
145
Category
Article
ISSN
0022-0531

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โœ J.A. Sefton ๐Ÿ“‚ Article ๐Ÿ“… 2000 ๐Ÿ› Elsevier Science ๐ŸŒ English โš– 226 KB

In this paper we describe a numerical solution of the consumer's life-cycle problem based on value function iteration. The advantage of our approach is that it retains the versatility of the value function iteration approach and achieves a high degree of accuracy without resorting to the very comput