This module of the course illustrates computational methods to solve continous and discrete dynamic programming problems. We'll do apply this computational tools to models of firm dynamics and corporate finance.
- Basic VFI to solve deterministic firm problem
- VFI with interpolation to solve deterministic firm problem
- Approximating an AR(1) process
- Solving for a stationary distribution
- Using Numba for just in time compiling code
- Intro slides
- The partial equilibrium problem of the firm
- The general equilibrium problem of the firm
- The Cake Eating Problem (Including the discrete choice version)
- Cooper and Ejarque (Review of Economic Dyanmics, 2003)
- Strebulaev and Whited (Foundation and Trends in Finance, 2012)
- Hennessey and Whited (Journal of Finance, 2005)
- Hennessey and Whited (Journal of Finance, 2007)
- Gamba and Triantis (Journal of Finance, 2008)
- Gomes (American Economic Review, 2000)
- Gourio and Miao (Review of Economic Dynamics, 2010)
- Gourio and Miao (American Economic Journal: Macroeconomics, 2010)