Heer, Burkhard; Maußner, Alfred - In: Journal of Economics and Statistics (Jahrbuecher fuer … 231 (2011) 4, pp. 494-515
Value function iteration is one of the standard tools for the solution of dynamic general equilibrium models if the … iteration as compared to (2) smart value function iteration neglects the special structure of the problem. (3) Full and (4 ….We find that value function iteration with cubic spline interpolation between grid points dominates the other methods if a …