{
    "id": 17418,
    "citation_title": "How to Solve Dynamic Stochastic Models Computing Expectations Just Once",
    "citation_author": [
        "<NAME>",
        "<NAME>",
        "<NAME>"
    ],
    "citation_publication_date": "2011-09-15",
    "issue_date": "2011-09-15",
    "revision_date": "None",
    "topics": [
        "Microeconomics",
        "Mathematical Tools"
    ],
    "program": [
        "Economic Fluctuations and Growth",
        "Technical Working Papers"
    ],
    "projects": null,
    "working_groups": null,
    "abstract": "\n\nWe introduce a technique called \"precomputation of integrals\" that makes it possible to compute conditional expectations in dynamic stochastic models in the initial stage of the solution procedure. This technique can be applied to any set of equations that contains conditional expectations, in particular, to the Bellman and Euler equations. After the integrals are precomputed, we can solve stochastic models as if they were deterministic. We illustrate the benefits of precomputation of integrals using one- and multi-agent numerical examples.\n\n",
    "acknowledgement": "\n<NAME> and <NAME> acknowledge support from the Hoover Institution at Stanford University, the Ivie, the Ministerio de Ciencia e Innovaci\u00f3n and FEDER funds under the project SEJ-2007-62656, and the Generalitat Valenciana under the grants BEST/2011/283 and BEST/2011/282, respectively. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.\n\n\n"
}