function and use value function iteration to compute the value function for the optimal policy. Polynomial approximations are … value function iteration with polynomial approximations is unstable because standard methods such as interpolation and least … squares fitting do not preserve shape. We introduce shape-preserving approximation methods that stabilize value function …

function and use value function iteration to compute the value function for the optimal policy. Polynomial approximations are … value function iteration with polynomial approximations is unstable because standard methods such as interpolation and least … squares fitting do not preserve shape. We introduce shape-preserving approximation methods that stabilize value function …

implement, dominates conventional value function iteration and is comparable in accuracy and cost to Carroll’s (2005) endogenous …

relationship. To compute the optimal contract, I also design an algorithm that is more efficient than value-function iteration. …

This paper studies a value function iteration algorithm based on nonexpansive function approximation and Monte Carlo …

Numerical methods for dynamic programming often use value function iteration and interpolation. We present a novel … shape-preserving rational spline approximation method that improves value function iteration in terms of both stability and …