The approximate solution of finite‐horizon discrete‐choice dynamic programming models
有限期离散选择动态规划模型的近似求解AI 解读 ↓
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Summary The estimation of finite‐horizon discrete‐choice dynamic programming (DCDP) models is computationally expensive. This limits their realism and impedes verification and validation efforts. Keane and Wolpin ( Review of Economics and Statistics , 1994, 76 (4), 648–672) propose an interpolation method that ameliorates the computational burden but introduces approximation error. I describe their approach in detail, successfully recompute their original quality diagnostics, and provide some additional insights that underscore the trade‐off between computation time and the accuracy of estimation results.
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