Chapter 13 focuses on infinite-horizon dynamic problems and the shift in perspective needed for solving them. Intuition is developed through the example of a commercial forest rotation. The chapter closes with the solution of a numeric infinite-horizon stochastic dynamic programming problem via the technique of policy iteration.

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To Infinity … and Beyond

  • Gerald Shively

摘要

Chapter 13 focuses on infinite-horizon dynamic problems and the shift in perspective needed for solving them. Intuition is developed through the example of a commercial forest rotation. The chapter closes with the solution of a numeric infinite-horizon stochastic dynamic programming problem via the technique of policy iteration.