Solving the Stochastic Growth Model by Using Quadrature Methods and Value-Function Iterations

dc.contributor.author	Tauchen, George	en_US
dc.date.accessioned	2010-03-09T15:28:05Z
dc.date.available	2010-03-09T15:28:05Z
dc.date.issued	1990	en_US
dc.identifier.uri	http://hdl.handle.net/10161/1885
dc.description.abstract	This article presents a solution algorithm for the capital growth model. The algorithm uses value-function iterations on a discrete state space. The quadrature method is used to set the grid for the exogenous process, and a simple equispaced scheme in logarithms is used to set the grid for the endogenous capital process. The algorithm can produce a solution to within four-digit accuracy using a state space composed of 1,800 points in total.	en_US
dc.format.extent	99877 bytes
dc.format.mimetype	application/pdf
dc.language.iso	en_US
dc.publisher	Journal of Business & Economic Statistics	en_US
dc.subject	Discrete methods	en_US
dc.subject	dynamic programming	en_US
dc.subject	numerical approximations	en_US
dc.title	Solving the Stochastic Growth Model by Using Quadrature Methods and Value-Function Iterations	en_US
dc.type	Journal Article	en_US
dc.department	Economics