The method of endogenous gridpoints for solving dynamic stochastic optimization problems

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.

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Year of publication:	2005
Authors:	Carroll, Christopher D.
Institutions:	Center for Financial Studies
Subject:	Dynamic optimization \| precautionary saving \| stochastic growth model \| endogenous gridpoints \| liquidity constraints

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Extent:	application/pdf
Series:	CFS Working Paper Series.
Type of publication:	Book / Working Paper
Notes:	Number 2005/18
Classification:	C6 - Mathematical Methods and Programming ; D9 - Intertemporal Choice and Growth ; E2 - Consumption, Saving, Production, Employment, and Investment
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010958628