Solving the stochastic growth model by using quadrature methods and value-function iterations

Published

Journal Article

This article presents a solution algorithm for the capital growth model. The algorithm uses value- function iterations on a discrete state space. The quadrature method is used to set the grid for the exogenous process, and a simple equispaced scheme in logarithms is used to set the grid for the endogenous capital process. The algorithm can produce a solution to within four-digit accuracy using a state space composed of 1,800 points in total. © 1990 American Statistical Association.

Full Text

Duke Authors

Cited Authors

  • Tauchen, G

Published Date

  • January 1, 1990

Published In

Volume / Issue

  • 8 / 1

Start / End Page

  • 49 - 51

Electronic International Standard Serial Number (EISSN)

  • 1537-2707

International Standard Serial Number (ISSN)

  • 0735-0015

Digital Object Identifier (DOI)

  • 10.1080/07350015.1990.10509776

Citation Source

  • Scopus