Do not Blame Bellman: It Is Koopmans' Fault.

We provide a unified approach to stochastic dynamic programming with recursive utility based on an elementary application of Tarski's fixed point theorem. We establish that the exclusive source of multiple values is the presence of multiple recursive utilities consistent with the given aggregator, e...

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Publicado en:Econometrica Vol. 92; no. 1; pp. 111 - 141
Autores principales: Bloise, Gaetano, Le Van, Cuong, Vailakis, Yiannis
Formato: Artículo
Publicado: Wiley-Blackwell Jan2024
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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      dt: Jan2024
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      pub: Wiley-Blackwell
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        10.3982/ECTA20386
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      tig:
        atl: Do not Blame Bellman: It Is Koopmans' Fault.
      aug:
        au:
          Bloise, Gaetano
          Le Van, Cuong
          Vailakis, Yiannis
        affil:
          Department of Economics and Finance, University of Rome II
          IPAG Business School, Paris School of Economics
          TIMAS
          CASED‐DEPOCEN
          Adam Smith Business School, University of Glasgow
      su:
        Dynamic programming
        Stochastic programming
      sug:
        subj:
          Dynamic programming
          Stochastic programming
      keyword:
        Bellman operator
        dynamic programming
        Koopmans operator
        multiplicity
        Stochastic recursive utility
        Bellman operator
        dynamic programming
        Koopmans operator
        multiplicity
        Stochastic recursive utility
      ab: We provide a unified approach to stochastic dynamic programming with recursive utility based on an elementary application of Tarski's fixed point theorem. We establish that the exclusive source of multiple values is the presence of multiple recursive utilities consistent with the given aggregator, each yielding a legitimate value of the recursive program. We also present sufficient conditions ensuring a unique value of the recursive program in some circumstances. Overall, acknowledging the unavoidable failure of uniqueness in general, we argue that the greatest fixed point of the Bellman operator should have a privileged position.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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