We formulate an infinite-horizon Bayesian learning model in which the planner faces a cost from switching actions that does not approach zero as the size of the change vanishes. We recast the model as a dynamic programming problem which will always have a continuous value function and an optimal...

Conditions are given for an infinite horizon consumption-savings model under which savings are bounded away from O with probability 1 even in the long-run. That is, with probability 1 there exists a time T and a minimum level of savings S [underlined] such for t [greater than] T savings will...

We formulate an infinite-horizon Bayesian learning model in which the planner faces a cost from switching actions that does not approach zero as the size of the change vanishes. We recast the model as a dynamic programming problem which will always have a continuous value function and an optimal...