Dynamic Programming on a Quantum Annealer: Solving the RBC Model

Jesus Fernandez-Villaverde and Isaiah Hull

No 10500, CESifo Working Paper Series from CESifo

Abstract: We introduce a novel approach to solving dynamic programming problems, such as those in many economic models, on a quantum annealer, a specialized device that performs combinatorial optimization. Quantum annealers attempt to solve an NP-hard problem by starting in a quantum superposition of all states and generating candidate global solutions in milliseconds, irrespective of problem size. Using existing quantum hardware, we achieve an order-of-magnitude speed-up in solving the real business cycle model over benchmarks in the literature. We also provide a detailed introduction to quantum annealing and discuss its potential use for more challenging economic problems.

Keywords: computational methods; dynamic equilibrium economies; quantum computing; quantum annealing (search for similar items in EconPapers)
JEL-codes: C63 C80 E37 (search for similar items in EconPapers)
Date: 2023
New Economics Papers: this item is included in nep-cmp and nep-dge
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Related works:
Working Paper: Dynamic Programming on a Quantum Annealer: Solving the RBC Model (2023)
Working Paper: Dynamic Programming on a Quantum Annealer: Solving the RBC Model (2023)
Working Paper: Dynamic Programming on a Quantum Annealer: Solving the RBC Model (2023)
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