Solutions Manual for
Recursive Methods
in Economic Dynamics



Comments and Corrections

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Chapter Two Overview

  1. Exercise 2.1: The statement of the problem is that F is homogeneous of degree one and strictly quasi-concave. The proof proceeds by assuming that F is strictly concave. The missing step in the argument is provided by the answer to Exercise 4.8.
Chapter Three Mathematical Preliminaries
Chapter Four Dynamic Programming Under Certainty
Chapter Five Applications of Dynamic Programming Under Certainty

  1. Exercise 5.1: Bobenrieth H., Eugenio S.A., Juan R.A. Bobenrieth H., and Brian D. Wright. 2006. "Strict concavity of the value function for a family of dynamic accumulation models." University of California - Berkely Working Paper.
  2. Exercise 5.5: Cheremukhin, Anton. 2006. "Problem 5.5: Tree Cutting." University of California - Los Angeles.
  3. Exercise 5.14: Kawakami, Kei. 2008. "Problem 5.14: Inventory Control in Discrete Time." University of California - Los Angeles.
  4. Exercise 5.15: Kawakami, Kei. 2008. "Problem 5.15: Inventory Control in Continuous Time." University of California - Los Angeles.
Chapter Six Deterministic Dynamics
Chapter Seven Measure Theory and Integration
Chapter Eight Markov Processes
Chapter Nine Stochastic Dynamic Programming
Chapter Ten Applications of Stochastic Dynamic Programming
Chapter Eleven Strong Convergence of Markov Processes
Chapter Twelve Weak Convergence of Markov Processes
Chapter Thirteen Applications of Convergence Results for Markov Processes
Chapter Fourteen Laws of Large Numbers
Chapter Fifteen Pareto Optima and Competitive Equilibria
Chapter Sixteen Applications of Equilibrium Theory
Chapter Seventeen Fixed-Point Arguments
Chapter Eighteen Equilibria in Systems with Distortions




Last Updated: 11th April 2008.