Heer, Burkhard; Maußner, Alfred - In: Jahrbücher für Nationalökonomie und Statistik 231 (2011) 4, pp. 494-515
Summary Value function iteration is one of the standard tools for the solution of dynamic general equilibrium models if … function iteration as compared to (2) smart value function iteration neglects the special structure of the problem. (3) Full … desired size is reached.We find that value function iteration with cubic spline interpolation between grid points dominates …