We show that the standard Value Function Iteration (VFI) algorithm has difficulties approximating models with jump discontinuities in policy functions. We find that VFI fails to accurately identify the location and size of jump discontinuities while other methods - such as the Endogenous Grid...

Using a stylized two-period model we compare portfolio solutions from two local solution approaches - the approach of Judd and Guu (2001) and the approach of Devereux and Sutherland (2010, 2011) - with the true nonlinear portfolio solution.

Purpose: This paper reviews current literature and contributes a set of findings that capture the current state-of-the-art of the topic of lot streaming in a flow-shop. Design/methodology/approach: A literature review to capture, classify and summarize the main body of knowledge on lot streaming...

The paper studies how high household leverage and crises can arise as a result of changes in the income distribution. Empirically, the periods 1920-1929 and 1983-2008 both exhibited a large increase in the income share of high-income households, a large increase in debt leverage of the...

This paper defines a monetary equilibrium and computes an optimal nonlinear, full-information, state-dependent monetary policy rule to which the monetary authority commits at the beginning of time. This type of optimal monetary policy represents a combination of the flexibility of discretion...

Purpose: This paper reviews current literature and contributes a set of findings that capture the current state-of-the-art of the topic of lot streaming in a flow-shop. Design/methodology/approach: A literature review to capture, classify and summarize the main body of knowledge on lot streaming...