Transforming an infinite horizon problem into a Dynamic Programming one

[@caniggia1993]

Thank you my friend, maybe my professor should be watching this.

[@md.arsalasif7522]

This solved almost all of my doubts. Thank you!

[@Meowmix8088]

University of Chicago student here. This is super helpful. Thank you

[@zoesoohyunlee7209]

Thank you so much for the video! Saved my life for this term XD

[@martinbrolarsen6580]

This just made it all clear. Thanks a lot, sir!

[@pawaredpiyajitmetta2172]

Thank a lot professor, it is so clear to me.

[@carloottomano4243]

This was fantastic and extremely clear. Thank you very much!

[@scarlettliu885]

Thank you very much!!! This Vedic helps me a lot.

[@TheBboy0720]

Excellent and extremely clear

[@forwoz]

Really awesome. Thx you for your explanation.

[@62294838]

This is incredibly prefect!

[@mohammadrezamahmoudi8564]

Thank you very much for your amazing and helpful tutorial!

[@adrianschroder4847]

Much appreciated!! Great breakdown

[@osvaldoquintellajunior9858]

Fantastic explanation! Thanks a lot!

[@fatimazaidi7068]

This is perfect. Thank you!

[@niazghumro2350]

Very informative video but screen is little bit dim. Please refer the book which you are following in this course. Thanks in anticipation prof.

[@АлександраТеплоухова]

Спасибо большое! Очень понятно и просто! Thank you! So clear and easy!

[@wondwesenwubugetahun3415]

It is brief and interesting. Thanks!

[@villageandanimals6986]

Thank you very much.

[@ablaamegadze9964]

Thanks very much my teacher .

[@kamrulhassan7157]

Wonderful lecture. Thanks a lot.

[@zzambezi1959]

If the function to be maximized is an infinite series, I think it is needed to suppose that beta

[@simonandradefonfach2317]

grande juliprofe gringo

[@rodolfosaturninoperezrodri7473]

Great Video!! Why do we have a beta in front of L1(k) ? Isn`t that part of the equation already discounted?

[@j.brightlee3314]

can someone tell me what he said at 8:30, "and it drops xxxx, what it does current stuff does not have xxxx ~ ". I have watched it over and over again, but still yet figured out what the word is... thx. My English is too bad...

[@aesahettr]

indices

[@MrMytubevidmaker]

10:29 How do you obtain u' if you're deriving with respect to k'? You should be left with -u.

[@constantinburgi3995]

I use the chain rule. If you take the derivative of g(f(x)) with respect to x you will get g'(f(x))f'(x). Or here: the derivative of u(x-y) with respect to y is -u'(x-y). As an intermediary step, you can also define f(x)=v, then the derivative of g(f(x)) is equal to the derivative of g(v) with respect to v times the derivative of f(x) with respect to x. Once you took the derivative, you replace v with f(x) again to get the above result.

[@chardduc]

goshh...much better than my professor

[@francoisallouin1865]

GREAAAAAAAT !!! Bravo.

[@mleodej]

Very helpful, thanks!

[@user-vd8pc1vh6j]

why is r constant? shouldn't it be function of t?

[@ablaamegadze9964]

Can you help me for a problem solving a exemple ?

[@johnnymonteiro5577]

Thank you!!

[@gunnarulfars]

Hello, Im wondering how to euler and the policy/decision rules will change if interest are a function of time? Best regards.

[@constantinburgi3995]

As long as the path of the interest rate r is deterministic, there is little change. ct+1 is the optimal response to all future interest rates and thus ct is a function of the optimal consumption tomorrow ct+1 and the current interest rate rt.

[@lannister1877]

Good! very useful!

[@zhifengwang5455]

thank you very much

[@pedrolopes2811]

excellent

[@francoisallouin1865]

At 12:09 you say " that's gone". This is false my dear . You can't apply the first order cond. directly to a max operator. You need to use the envelope theorem again which leeds to a cercle of infinite derivations ....your method in not correct.

[@constantinburgi3995]

You are right that I do not go into the details of explaining the Benveniste - Scheinkman envelope theorem (and its assumption). Once applying it though (after verifying the assumptions), it is easily shown that the term disappears.

[@francoisallouin1865]

Thank you very much for sharing this knowledge . Once again you prove you are awesome !! with respect.

[@constantinburgi3995]

No worries, I should have pointed it out in the video! As a side note, if you want to derive the envelope condition, you need to take the derivative of V(k'') with respect to k''' and multiply it with the derivative of k''' with respect to k'. Given that the first derivative is 0 based on the first order condition, you immediately get the result you wanted.

[@KirilStanoev]

Your t and + look the same and it is confusing!

[@BilBumm]

Haha I tell you I have not seen any macro prof whose t doesnt look like a + ;D

[@theinstigatorr]

I love you

[@yaathumoore360]

What is u hear