The Method of Endogenous Gridpoints for Solving Dynamic Stochastic Optimization Problems

Christopher Carroll ()

No 2005/18, CFS Working Paper Series from Center for Financial Studies

Abstract: 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.

Keywords: Dynamic optimization; precautionary saving; stochastic growth model; endogenous gridpoints; liquidity constraints (search for similar items in EconPapers)
JEL-codes: C6 D9 E2 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-cmp, nep-dge and nep-mac
Date: 2005-01-18
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Related works:
Working Paper: The Method of Endogenous Gridpoints for Solving Dynamic Stochastic Optimization Problems (2005)
Working Paper: The Method of Endogenous Gridpoints for Solving Dynamic Stochastic Optimization Problems (2005)
Journal Article: The method of endogenous gridpoints for solving dynamic stochastic optimization problems (2006)
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Persistent link: http://EconPapers.repec.org/RePEc:cfs:cfswop:wp200518

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