We present theorems on the existence of Berk-Nash equilibria in misspecified Markov Decision Processes with infinite action and state spaces. We extend the results of Esponda-Pouzo (2021) for finite state and action spaces to compact action spaces and sigma-compact state spaces with possibly...

The fact that consumption and investment goods are perfect substitutes in discounted stochastic optimal growth theory, as represented by a one-sector neoclassical model, results in a smooth production-possibility-frontier (PPF) for which first-order Ramsey-Euler conditions can be fully...