Stochastic Optimal Policies When the Discout Rate Vanishes

Kazuo Nishimura and John Stachurski ()

No 617, KIER Working Papers from Kyoto University, Institute of Economic Research

Abstract: Dutta (J. Econom. Theory, 1991, 55, 64?94) showed that long-run optimality of the limit of discounted optima when the discount rate vanishes is implied by a certain bound on the value function of the optimal program. We introduce a new method to verify this bound using coupling techniques.

Keywords: Dynamic programming; Long-run optimality. (search for similar items in EconPapers)
Pages: 19pages
Date: 2006-04
New Economics Papers: this item is included in nep-dge
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Related works:
Journal Article: Stochastic optimal policies when the discount rate vanishes (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:kyo:wpaper:617

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