Dynamic programming in economic models neoclassical growth model bellman equation
Download
1 / 15

Dynamic Programming in Economic Models Neoclassical Growth Model Bellman Equation - PowerPoint PPT Presentation


  • 269 Views
  • Uploaded on

Dynamic Programming in Economic Models Neoclassical Growth Model Bellman Equation. Dr. Keshab R Bhattarai Business School, University of Hull. Neo-classical Growth Model: Current Value Hamiltonian. Optimality and Boundary Conditions. Characterisation of the Balanced Growth Path.

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Dynamic Programming in Economic Models Neoclassical Growth Model Bellman Equation' - gunda


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
Dynamic programming in economic models neoclassical growth model bellman equation l.jpg

Dynamic Programming in Economic ModelsNeoclassical Growth ModelBellman Equation

Dr. Keshab R Bhattarai

Business School, University of Hull





Slide5 l.jpg

Transitional Dynamics-1

Transitional Dynamics-1

Keshab Bhattarai


Slide6 l.jpg

Transitional Dynamics-2

Keshab Bhattarai


Slide7 l.jpg

Transitional Dynamics-2

Keshab Bhattarai


Slide8 l.jpg

Saddle Point Solution

Keshab Bhattarai


Slide9 l.jpg

Brock-Mirman(1972)dynamic programming problem

Bellman’s Equations

Subject to

Value function

Keshab Bhattarai


Slide10 l.jpg

Solution by Iteration

First and Second Iteration of the Value function

Keshab Bhattarai






References l.jpg
References

  • Bellman, R (1957) Dynamic Programming, Princeton University Press.

  • Brock W and L Mirman (1972) Optimal Economic Growth and Uncertainty: the Discounted Case, Journal of Economic Theory 4(3):479-513.

  • Cass, D. (1965): Optimum Growth in Aggregative Model of Capital Accumulation, Review of Economic Studies, 32:233-240.

  • Ljungqvist L and T.J. Sargent (2000), Recursive Macroeconomic theory, MIT Press

  • Parente S.L.(1994) Technology Adoption, Learning-by-Doing, and Economic Growth, Journal of Economic Theory, 63, pp. 346-369.

  • Sargent TJ (1987) Dynamic Macroeconomic Theory, Chapter 1, Harvard University Press.

  • Solow, R.M. (1956) “A Contribution to the Theory of Economic Growth.” QuarterlyJournal of Economics 70, 65-94.

  • Stokey, N. L. and R.E. Lucas (1989) Recursive Methods in Economic Dynamics, Harvard UP, Cambridge, MA.

  • Uzawa, H. (1962) “On a Two-Sector Model of Economic Growth,” Review of Economic Studies 29, 40-47.

Keshab Bhattarai


ad