We provide an empirical analysis of the Social Security disability application, award, and appeal process using the Health and Retirement Survey. We show that the appeal option increases the award probability from 46\% to 73\%. However, this comes at the cost of significant delays: the duration...

This paper compares the performance of the Howard (1960) policy iteration algorithm for infinite-horizon continuous-state Markovian decision processes (MDP's) using alternative random, quasi- random, and deterministic discretizations of the state space, or grids. Each grid corresponds to an...

We consider the problem of computing approximations to fixed points of quasilinear contraction mappings defined on the space of continuous functions of $d$ variables. Our main emphasis is on large d. Examples of such mappings include the Bellman operator from the theory of dynamic programming....

This essay is a response to a growing negative literature that suggests that neoclassical economic theories based on hypotheses of rationality and equilibrium are of limited practical relevance because they require an infeasibly large number of calculations. Many of the negative results are...

We present a new detailed data set of high-frequency observations on inventory investment by a U.S. steel wholesaler. Our analysis of the data leads to six main conclusions: orders and sales are made infrequently; orders are more volatile than sales; order sizes vary considerably; there is...