A general setting and solution of Bellman equation in monetary theory

DOI10.1155/2014/495089MaRDI QIDQ2336476zbMATH OpenOpenAlexDBLPWikidataFDO

Authors Xiaoli Gan, Wanbo Lu

Publication date 19 November 2019

Published in Journal of Applied Mathematics (Search for Journal in Brave)

Copyright license Creative Commons Attribution 3.0 Unported

Full work available at URL https://doi.org/10.1155/2014/495089

Mathematics Subject Classification ID

Macroeconomic theory (monetary models, models of taxation) (91B64)

Review text

Summary: 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.

Recommendations

• On the basis of the Hamilton-Jacobi-Bellman equation in economic dynamics
• Elementary results on solutions to the Bellman equation of dynamic programming: existence, uniqueness, and convergence
• scientific article; zbMATH DE number 1932346
• On the Bellman's principle of optimality
• Study of the Bellman equation in a production model with unstable demand

Cites work

• Money and Growth: The Case of Long Run Perfect Foresight

Cited in

(1)

• Simplifying numerical analyses of Hamilton-Jacobi-Bellman equations

This page was built for publication: A general setting and solution of Bellman equation in monetary theory

Report a bug (only for logged in users!)Click here to report a bug for this page (MaRDI item Q2336476)