Envelope condition method versus endogenous grid method for solving dynamic programming problems

• Lilia Maliar ^[1] ; Serguei Maliar ^[1]
  1. [1] Universitat d'Alacant

     Universitat d'Alacant

     Alicante, España

     
• Localización: Working papers = Documentos de trabajo: Serie AD, Nº. 7, 2013, págs. 1-15
• Idioma: inglés
• Enlaces
  • Texto completo (pdf)
• Resumen

  • We introduce an envelope condition method (ECM) for solving dynamic programming problems. The ECM method is simple to implement, dominates conventional value function iteration and is comparable in accuracy and cost to Carroll’s (2005) endogenous grid method. Codes are available