Value function iteration is one of the standard tools for the solution of the Ramsey model. We compare six different … ways of value function iteration with regard to speed and precision. We find that value function iteration with cubic … function over a fine grid, modified policy function iteration over a coarse grid and subsequent linear interpolation between …

Value function iteration is one of the standard tools for the solution of the Ramsey model. We compare six different … ways of value function iteration with regard to speed and precision. We find that value function iteration with cubic … function over a fine grid, modified policy function iteration over a coarse grid and subsequent linear interpolation between …

region---the region of the parameter space where our policy function iteration algorithm converges to an MSV solution. We …

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 …

conventional value function iteration. ECM has two novel features: First, to reduce the cost, ECM replaces expensive backward …