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2014 A General Setting and Solution of Bellman Equation in Monetary Theory
Xiaoli Gan, Wanbo Lu
J. Appl. Math. 2014: 1-9 (2014). DOI: 10.1155/2014/495089

Abstract

As an important tool in theoretical economics, Bellman equation is very powerful in solving optimization problems of discrete time and is frequently used in monetary theory. Because there is not a general method to solve this problem in monetary theory, it is hard to grasp the setting and solution of Bellman equation and easy to reach wrong conclusions. In this paper, we discuss the rules and problems that should be paid attention to when incorporating money into general equilibrium models. A general setting and solution of Bellman equation in monetary theory are provided. The proposed method is clear, is easy to grasp, is generalized, and always leads to the correct results.

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Xiaoli Gan. Wanbo Lu. "A General Setting and Solution of Bellman Equation in Monetary Theory." J. Appl. Math. 2014 1 - 9, 2014. https://doi.org/10.1155/2014/495089

Information

Published: 2014
First available in Project Euclid: 2 March 2015

zbMATH: 07131642
MathSciNet: MR3294901
Digital Object Identifier: 10.1155/2014/495089

Rights: Copyright © 2014 Hindawi

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