/mpec-grid-adaption

Code to replicate the main example in Lanz, Reich, and Wilms (2021)

Primary LanguageMATLAB

Instructions for the supplementary codes of ’Adaptive Grids for the Estimation of Dynamic Programming Models’

Authors: Andreas Lanz, Gregor Reich and Ole Wilms
Contact: http://www.olewilms.com

Instructions:

  • The codes solves the bus engine replacement model of Rust (1987) both using a fixed grid and the flexible grid proposed in the paper.

  • As in Section 2.3.3 of the paper, a monte carlo study is conducted to estimate the model parameters using both, the flexible and fixed grid.

  • The main file to run the codes is ’Main.m’. It reproduces Table 3 and 5 in the paper depending on the choice of cost function and θ2 parameter.

  • Please use Matlab R2017a or a more recent version to run the codes.