This paper introduces a method for solving numerical dynamic stochastic optimization problems that avoids rootfinding operations. The idea is applicable to many microeconomic and macroeconomic problems, including life cycle, buffer-stock, and stochastic growth problems. Software is provided.
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The Method of Endogenous Gridpoints for Solving Dynamic Stochastic Optimization Problems
2005, National Bureau of Economic Research
electronic resource
in English
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June 2005.
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