How can dynamic programming be used to solve intertemporal optimization problems?

Aug 29, 2022 ... site logo Join Economics · OR · Illustration of upvote icon after it is clicked · Hang on, you can't upvote just yet. · Illustration of upvote ... The theoretical model of the intertemporal budget constraint suggests that when the rate of return rises, the quantity of saving may rise, fall, or remain the ... to an inter-temporal budget constraint, stock of assets, and limits on borrowing. If, at an instant of time, returns to capital are relatively high, the ... present value of domestic production. The intertemporal budget constraint delimits the feasible choices of the economy. To describe the circumstances in which ... The intertemporal budget constraint for an infinite-horizon representative agent can be written as. ◜≡H◞t◟-◝ ℙt (C ) = Bt + ℙt. (1). where Bt is the ... Oct 3, 2021 ... Imagine that income in the current period falls (moves to E'). All else being equal, use the line tool to draw the new intertemporal budget constraint. Mar 2, 2017 ... • Intertemporal choice. • Three periods, = 0, = 1, and = 2 ... • Anticipated budget constraint at = 1: 1. +. 1. 1 +. 2 ... Aug 11, 2003 ... Choosing an investment plan is equivalent to choosing a sequence of capital installations {kt+1}. Intertemporal budget constraint. The sequence ... Nov 24, 2024 ... My hot take is that this isn't a trivial intertemporal budget constraint. It's an optimal stopping problem: cakes have evolving texture and ... ... intertemporal budget constraint considered in a Bewley economy (with a single asset). We also show parameterizations of our model in which we can obtain a ...