function over a fine grid, modified policy function iteration over a coarse grid and subsequent linear interpolation between …

function over a fine grid, modified policy function iteration over a coarse grid and subsequent linear interpolation between …

Policy function iteration methods for solving and analyzing dynamic stochastic general equilibrium models are powerful … reliance on grid-based methods have limited the use of policy function iteration as a solution algorithm. We reduce these costs …’s executable function. Within the class of policy function iteration methods, we advocate using time iteration with linear …