Concepts & Methods

This chapter explains why pylcm’s representations and algorithms work. It assumes basic finite-horizon dynamic programming and can use Bellman equations, first-order conditions, and interpolation notation. It does not document private engine modules.

Economic and computational representation¶

• Dynamic programming and pylcm

• Functions as a dependency graph

• Phase-dependent model structure

• Preference aggregation and certainty equivalents

• Beta-delta discounting

Solution methods¶

• Solver families gives the map.

• The endogenous-grid method derives the one-margin foundation.

• Discrete choice and upper envelopes

• Nested endogenous-grid methods

• Declared non-convex budgets

• Scaling, memory, and hardware

Approximation and uncertainty¶

• Interpolation

• Approximating continuous shocks

• Stochastic transitions

Each method page links to the declarations it requires and to runnable examples. The Reference is normative when an exact contract matters.