Existence and Uniqueness of Solutions to the Bellman Equation in the Unbounded Case.

We study the problem of the existence and uniqueness of solutions to the Bellman equation in the presence of unbounded returns. We introduce a new approach based both on consideration of a metric on the space of all continuous functions over the state space, and on the application of some metric fix...

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Publicado en:Econometrica Vol. 71; no. 5; pp. 1519 - 1556
Autores principales: Rincón-Zapatero, Juan Pablo, Rodríguez-Palmero, Carlos
Formato: Artículo
Publicado: Wiley-Blackwell September 2003
Materias:
Acceso en línea:Ver este registro en EBSCOhost
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        atl: Existence and Uniqueness of Solutions to the Bellman Equation in the Unbounded Case.
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        au:
          Rincón-Zapatero, Juan Pablo
          Rodríguez-Palmero, Carlos
      su:
        Dynamic programming
        Nonlinear programming
      sug:
        subj:
          Dynamic programming
          Nonlinear programming
      ab: We study the problem of the existence and uniqueness of solutions to the Bellman equation in the presence of unbounded returns. We introduce a new approach based both on consideration of a metric on the space of all continuous functions over the state space, and on the application of some metric fixed point theorems. With appropriate conditions we prove uniqueness of solutions with respect to the whole space of continuous functions. Furthermore, the paper provides new sufficient conditions for the existence of solutions that can be applied to fairly general models. It is also proven that the fixed point coincides with the value function and that it can be approached by successive iterations of the Bellman operator. Reprinted by permission of the publisher.
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    language: English
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