Robert E. Hall, "Forward-Looking Decision Making: Dynamic Programming Models Applied to Health, Risk, Employment, and Financial Stability"
English | ISBN: 0691142424 | 2010 | 144 pages | PDF | 1,4 MB
Individuals and families travel over key decisions that impact many aspects of pecuniary stability and determine the future of the frugality. These decisions involve balancing current immolation against future benefits. People have to decide in what manner much to invest in health care, drilling, their diet, and insurance. They be necessitated to decide how much debt to take adhering, and how much to save. And they form choices about jobs that determine application and unemployment levels. Forward-Looking Decision Making is encircling modeling this individual or family-based resolution making using an optimizing dynamic programming original. Robert Hall first reviews ideas round dynamic programs and introduces new ideas touching numerical solutions and the representation of solved models during the time that Markov processes. He surveys recent scrutiny on the parameters of preferences--the intertemporal tendency to rebound of substitution, the Frisch elasticity of labor furnish, and the Frisch cross-elasticity. He afterward examines dynamic programming models applied to soundness spending, long-term care insurance, trade, entrepreneurial risk-taking, and consumer debt. Linking theory with data and applying them to actually being-world problems, Forward-Looking Decision Making uses dynamic optimization programming models to cabin light on individual behaviors and their housekeeping implications.