Becker, Stephanie; Grüne, Lars; Semmler, Willi - In: Computational Economics 30 (2007) 1, pp. 65-91
equilibrium, the second-order approximation method performs satisfactorily; however, on larger regions, dynamic programming … a base-line stochastic growth model, this paper compares the accuracy of second-order approximations and dynamic … programming solutions for both the decision variable and the value function as well. We find that, in a neighborhood of the …