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Dynamic Programming in Economic Models Neoclassical Growth Model Bellman Equation

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.

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Dynamic Programming in Economic Models Neoclassical Growth Model Bellman Equation

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  1. Dynamic Programming in Economic ModelsNeoclassical Growth ModelBellman Equation Dr. Keshab R Bhattarai Business School, University of Hull

  2. Neo-classical Growth Model: Current Value Hamiltonian Keshab Bhattarai

  3. Optimality and Boundary Conditions Keshab Bhattarai

  4. Characterisation of the Balanced Growth Path Keshab Bhattarai

  5. Transitional Dynamics-1 Transitional Dynamics-1 Keshab Bhattarai

  6. Transitional Dynamics-2 Keshab Bhattarai

  7. Transitional Dynamics-2 Keshab Bhattarai

  8. Saddle Point Solution Keshab Bhattarai

  9. Brock-Mirman(1972)dynamic programming problem Bellman’s Equations Subject to Value function Keshab Bhattarai

  10. Solution by Iteration First and Second Iteration of the Value function Keshab Bhattarai

  11. Third Iteration of the Value function Keshab Bhattarai

  12. Fourth Iteration of the Value function Keshab Bhattarai

  13. Limits of the Value Function in Infinite Iterations Keshab Bhattarai

  14. Limits of the Value Function in Infinite Iterations Keshab Bhattarai

  15. 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

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