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1、SolutionsManualforRecursiveMethodsinEconomicDynamicsSolutionsManualforRecursiveMethodsinEconomicDynamicsClaudioIrigoyenEstebanRossi-HansbergMarkL.J.WrightHarvardUniversityPressCambridge,Massachusetts,andLondon,England2002Copyright°c2002bythePresidentandFellowsofHarvardCollegeAllri
2、ghtsreservedPrintedintheUnitedStatesofAmericaLibraryofCongressCataloging-in-PublicationDataToMarta,Santiago,andFederico—CIToMariaJose—ERHToChristine—MLJWContents1Introduction12AnOverview33MathematicalPreliminaries204DynamicProgrammingunderCertainty435ApplicationsofDynamicProgrammi
3、ngunderCertainty566DeterministicDynamics857MeasureTheoryandIntegration1028MarkovProcesses1379StochasticDynamicProgramming15410ApplicationsofStochasticDynamicProgramming17911StrongConvergenceofMarkovProcesses19912WeakConvergenceofMarkovProcesses20813ApplicationsofConvergenceResults
4、forMarkovProcesses22314LawsofLargeNumbers24615ParetoOptimaandCompetitiveEquilibria252vivii16ApplicationsofEquilibriumTheory26617Fixed-PointArguments28418EquilibriainSystemswithDistortions298ForewordOvertheyearswehavereceivedmanyrequestsforananswerbookfortheexercisesinRecursiveMeth
5、odsinEconomicDynamics.Theserequestshavecomenotfromineptteachersorlazystudents,butfromseriousreaderswhohavewantedtomakesuretheirtimewasbeingwellspent.ForastudenttryingtomasterthematerialinRecursiveMethods,theexercisesarecritical,andsomeofthemarequitehard.Thusitisusefulforthereadert
6、obereassuredalongthewaythatheorsheisontherighttrack,andtohavemisconceptionscorrectedquicklywhentheyoccur.Inaddition,someoftheproblemsneedmorespecificguidelinesorsharperformulations,andafew(nottoomany,weliketothink)containerrors—commandstoproveassertionsthat,underthestatedassumption
7、s,arejustnottrue.Consequently,whenthreeofourbestgraduatestudentsproposedtowriteaSolutionsManual,weweredelighted.Whilewefirmlybelieveinthevalueofworkingoutproblemsforoneself,inlearningbydoing,itisclearthatthepresentbookwillbeaninvaluableaidforstudentsengagedinthisenterprise.Theexerc
8、isesinRecursiveMethodsareoftwotyp
