Answers are grounded in this paper and cite their sources.
We study a generalized version of Coleman (1990)'s time iteration method (GTI) for solving dynamic optimization problems.Our benchmark framework is an irreversible investment model with labor-leisure choice.The GTI algorithm is simple to implement and provides advantages in terms of speed relative to Howard (1960)'s improvement algorithm.A second application on a heterogeneous-agents incomplete-markets model further explores the performance of GTI.
No takes yet. Share an insight, caveat, or question.
Kabukçuoğlu et al. (2020) studied this question.