This paper compares numerical methods for solving the competitive storage model. Because storage implies a nonnegativity constraint on stocks, the solution methods must be considered carefully. The model is solved using value function iteration and several projection approaches, including...

This paper compares numerical methods for solving the competitive storage model. Because storage implies a nonnegativity constraint on stocks, the solution methods must be considered carefully. The model is solved using value function iteration and several projection approaches, including...

This paper considers the cross-sectional aggregation of nonlinear decision rules derived from intertemporal optimization problems under uncertainty, examining in particular (i) the role of aggregation across decision rules of heterogeneous decision makers as a source of variation and persistence...