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Handbook of Computational Economics by Kenneth L. Judd, Karl Schmedders

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• Step 2. Computation of the capital choice.Compute image for image.

• Step 3. Computation of the intratemporal choice. Compute image satisfying (136), (139), and (140) given image for image.

• Step 4. Approximation of conditional expectation.For ,

(a) compute:

–  for all ...

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