Solving Internal Habit Formation Models Through Dynamic Programming in Infinite Dimension
(2017)
Journal Article
Augeraud-Veron, E., Bambi, M., & Gozzi, F. (2017). Solving Internal Habit Formation Models Through Dynamic Programming in Infinite Dimension. Journal of Optimization Theory and Applications, 173(2), 584-611. https://doi.org/10.1007/s10957-017-1073-8
In this paper, we study an economic model, where internal habits play a role. Their formation is described by a more general functional form than is usually assumed in the literature, because a finite memory effect is allowed. Indeed, the problem bec... Read More about Solving Internal Habit Formation Models Through Dynamic Programming in Infinite Dimension.