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This sounds rather similar to a lot of the work being done in macro/public finance right now. If you look at a model from someone like Mendoza you’ll see that
by webel0 6y ago
This sounds rather similar to a lot of the work being done in macro/public finance right now.
If you look at a model from someone like Mendoza you’ll see that they have several parts of the economy characterized as recursive optimization problems + various constraints.
As others have pointed out, however, it is quite difficult to interpret these model results. The best you can do oftentimes is argue for why your setup makes sense then provide some intuition for what is going on. The problem is that slightly tweaked models are capable of delivering qualitatively divergent results.
I do think that reinforcement learning brings to the table some novel techniques for solving models with larger state spaces, though.