On high-order differentiability of the policy function

Manuel Santos

Research output: Contribution to journal › Article

9 Citations (Scopus)

Abstract

This note presents some results concerning high-order differentiability of the policy function. It is shown that simple examples of cubic return functions may yield optimal policies which under standard conditions are not differentiable to high order. The loss of differentiability, however, is not robust to small perturbations of the model. For instance, monotone policy functions are almost always high-order differentiable.

Original languageEnglish (US)
Pages (from-to)565-570
Number of pages6
JournalEconomic Theory
Volume3
Issue number3
DOIs
StatePublished - Sep 1993
Externally publishedYes

Fingerprint

Policy function
Differentiability
Optimal policy
Perturbation

ASJC Scopus subject areas

  • Economics and Econometrics

Cite this

On high-order differentiability of the policy function. / Santos, Manuel.

In: Economic Theory, Vol. 3, No. 3, 09.1993, p. 565-570.

Research output: Contribution to journal › Article

Santos, M 1993, 'On high-order differentiability of the policy function', Economic Theory, vol. 3, no. 3, pp. 565-570. https://doi.org/10.1007/BF01209702
Santos M. On high-order differentiability of the policy function. Economic Theory. 1993 Sep;3(3):565-570. https://doi.org/10.1007/BF01209702
Santos, Manuel. / On high-order differentiability of the policy function. In: Economic Theory. 1993 ; Vol. 3, No. 3. pp. 565-570.
@article{01ab8d59094246428cacd70926a7063f,
title = "On high-order differentiability of the policy function",
abstract = "This note presents some results concerning high-order differentiability of the policy function. It is shown that simple examples of cubic return functions may yield optimal policies which under standard conditions are not differentiable to high order. The loss of differentiability, however, is not robust to small perturbations of the model. For instance, monotone policy functions are almost always high-order differentiable.",
author = "Manuel Santos",
year = "1993",
month = "9",
doi = "10.1007/BF01209702",
language = "English (US)",
volume = "3",
pages = "565--570",
journal = "Economic Theory",
issn = "0938-2259",
publisher = "Springer New York",
number = "3",

}

TY - JOUR

T1 - On high-order differentiability of the policy function

AU - Santos, Manuel

PY - 1993/9

Y1 - 1993/9

N2 - This note presents some results concerning high-order differentiability of the policy function. It is shown that simple examples of cubic return functions may yield optimal policies which under standard conditions are not differentiable to high order. The loss of differentiability, however, is not robust to small perturbations of the model. For instance, monotone policy functions are almost always high-order differentiable.

AB - This note presents some results concerning high-order differentiability of the policy function. It is shown that simple examples of cubic return functions may yield optimal policies which under standard conditions are not differentiable to high order. The loss of differentiability, however, is not robust to small perturbations of the model. For instance, monotone policy functions are almost always high-order differentiable.

UR - http://www.scopus.com/inward/record.url?scp=0001577414&partnerID=8YFLogxK

UR - http://www.scopus.com/inward/citedby.url?scp=0001577414&partnerID=8YFLogxK

U2 - 10.1007/BF01209702

DO - 10.1007/BF01209702

M3 - Article

AN - SCOPUS:0001577414

VL - 3

SP - 565

EP - 570

JO - Economic Theory

JF - Economic Theory

SN - 0938-2259

IS - 3

ER -

Access to Document