Economic Applications of Stochastic Dynamic Programming (1/3): A Stochastic Cake Eating Problem @EconJohnTutor

Uploaded March 2020 | Updated September 2026, 1 week ago

In this video we go over a stochastic cake eating problem as a way to introduce solving stochastic dynamic programming problems in discrete time. We conciser the case of an infinite horizon where shocks follow a standard normal iid process.

Economic Applications of Stochastic Dynamic Programming (1/3): A Stochastic Cake Eating Problem

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