Graduate Macro Theory II:
Notes on Value Function Iteration
Eric Sims
University of Notre Dame
Spring 2011
1
Introduction
These notes discuss how to solve dynamic economic models using value function iteration.
2
A Deterministic Growth Model
The solution
Lecture 13: Risk Aversion and Expected Utility
Uncertainty over monetary outcomes
Let x denote a monetary outcome.
C is a subset of the real line, i.e. [a, b] f .
A lottery L is a cumulative distribution function F : 6 [0, 1].
Let f(x) be the density func
Graduate Macro Theory II:
Two Period Consumption-Saving Models
Eric Sims
University of Notre Dame
Spring 2015
1
Introduction
This note works through some simple two-period consumption-saving problems. In this model
households receive an exogenous stream o
Lecture 3
Dynamic Equilibrium Models III : Infinite Periods
1. Introduction
In this lecture, we extend our analysis to infinite periods. The method of dynamic
programming can be easily applied to solve infinite horizon optimization problems. In fact,
in c
Mind & Society (2005) 4: 8596
DOI 10.1007/s11299-005-0006-7
O R I GI N A L A R T I C L E
Martin M. Monti Simon Grant Daniel N. Osherson
A note on concave utility functions
Received: 29 June 2004 / Accepted: 5 October 2004
Fondazione-Rosselli 2005
Abstrac
Lecture Notes 7
Dynamic Programming
In these notes, we will deal with a fundamental tool of dynamic macroeconomics: dynamic programming. Dynamic programming is a very convenient
way of writing a large set of dynamic problems in economic analysis as most o
Resursive deterministic models
Prof. George McCandless
UCEMA
Spring 2007
1
Recursive deterministic models
Recursive deterministic models
What is a recursive problem
Nature of the problem is the same independent of the period
1. Same maximization problem
2