Before the dynamic programming lectures_澳门皇冠体育,皇冠足球比分

2019-03-18T10:51:39.408Z
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To get the mindset:

Imagine that from a stock of (positive) size x, you get a proportional yield bx which can be reinvested for higher stock next period, or consumed now. b>0 is a constant.

You reinvest a fraction u (in the unit interval [0,1]) of bx, and consume (1 -u) bx at log utility. There is capital depreciation at constant rate ? so we assume that this will give you a stock tomorrow of g( x,u) = ( 1-?) x + bux = ( 1-?+bu) x. There is no discounting.

To get a solution, we shall assume b>1 -?. (And, ? in [0,1].)