Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/166731
Authors: 
Kabukçuoğlu, Ayşe
Martínez-García, Enrique
Year of Publication: 
2016
Series/Report no.: 
Koç University-TÜSİAD Economic Research Forum Working Paper Series 1607
Abstract: 
We introduce the market resources method (MRM) for solving dynamic optimization problems. MRM extends Carroll's (2006) endogenous grid point method (EGM) for problems with more than one control variable using policy function iteration. The MRM algorithm is simple to implement and provides advantages in terms of speed and accuracy over Howard's policy improvement algorithm. Codes are available.
Subjects: 
DSGE models
Computational methods
Policy function iteration
Endogenous grid
JEL: 
C6
C61
C63
C68
Document Type: 
Working Paper

Files in This Item:
File
Size
445.75 kB





Items in EconStor are protected by copyright, with all rights reserved, unless otherwise indicated.