Cai, Yongyang; Judd, Kenneth - In: Mathematical Methods of Operations Research 77 (2013) 3, pp. 407-421
individuals and optimal growth of national economies are typical examples. Numerical methods typically approximate the value … function and use value function iteration to compute the value function for the optimal policy. Polynomial approximations are … natural choices for approximating value functions when we know that the true value function is smooth. However, numerical …