These notes provide an intuitive introduction to dynamic programming. The first two Sections, which can be skipped, present the standard deterministic Ramsey model using the Lagrangian approach. Section 3 reformulates the Ramsey problem by means of a Bellman equation, while Section 4 shows how...

Public health implications of COVID-19 resulted in widespread business closures and job losses. Disruptions in the service and transportation sectors, acute reductions in income, and an uptick in unemployment were the outcome of pandemic mitigating procedures adopted by many governments. While...

Cross-sector labor reallocation is associated with costs at the micro level ranging from the costs of geographical relocation and skill change/adaptation to unemployment. We show that monotonous reallocation paths minimize the aggregate reallocation costs in the three-sector framework (relating...

The purpose of this paper is to provide an exact algebraic solution to a fully specified Romer endogenous growth model. The proposed model has three main virtues. First, taking Romer's [1986] model as the starting point, we build a completely and explicitly micro-founded competitive general...

This paper explores sufficient conditions for a continuous stationary Markov optimal policy and a concave value function in stochastic dynamic programming problems. Also, the paper addresses conditions needed for the differentiability of the value function. The paper uses conditions such as...