Task was to solve the stochastic infinite-horizon Ramsey growth model via value function iterations algo on a discrete grid of states.
pip3 install -r requirements.txt
Just run main.py
and have fun 😎
Approximates AR(1)-Process by Markov chain
Bilinear intepolation, used for the computation of the policy function
Calculates the policy function via bilinear interpolation, used for the calculation of the Euler residuals
Computes Euler residuals
Computes the policy function for a Stochastic Infinite-Horizon Ramsey Model
Contains the one-period utility function of the model
File with global constants