Skip to content

Commit

Permalink
FIX: align* to aligned
Browse files Browse the repository at this point in the history
  • Loading branch information
mmcky committed Jul 21, 2024
1 parent 79f542b commit 1f9288a
Showing 1 changed file with 6 additions and 10 deletions.
16 changes: 6 additions & 10 deletions lectures/calvo_machine_learn.md
Original file line number Diff line number Diff line change
Expand Up @@ -13,7 +13,6 @@ kernelspec:

# Machine Learning a Ramsey Plan


## Introduction

This lecture studies a problem that we also study in another quantecon lecture
Expand All @@ -37,8 +36,9 @@ In this lecture, we approach the Ramsey planner in a much less sophisticated way

Instead, we use a brute force approach that naively states the Ramsey problem
in terms of a pair of infinite sequences of real numbers that the Ramsey planner chooses
* a sequence $\vec \theta$ of inflation rates
* a sequence $\vec \mu$ of money growh rates

* a sequence $\vec \theta$ of inflation rates
* a sequence $\vec \mu$ of money growh rates

We take the liberty of calling this a **machine learning** approach because of how it fails to take advantage of the structure exploited by dynamic programming squared, at the cost of proliferating parameters.

Expand Down Expand Up @@ -811,12 +811,12 @@ $$
With our assumption above, criterion $V$ can be rewritten as
$$
\begin{align*}
\begin{aligned}
V & = \sum_{t=0}^{T-1} \beta^t (h_0 + h_1 \theta_t + h_2 \theta_t^2 -
\frac{c}{2} \mu_t^2 ) \cr
& + \frac{\beta^T}{1-\beta} (h_0 + h_1 \theta_T + h_2 \theta_T^2 -
\frac{c}{2} \mu_T^2 )
\end{align*}
\end{aligned}
$$
To help us write $V$ as a quadratic plus affine form, define
Expand Down Expand Up @@ -1147,9 +1147,7 @@ $$
\mu_t = .0645 + 1.5995 \theta_t
$$
fits perfectly and that so does
the regression line
fits perfectly and that so does the regression line
$$
\theta_{t+1} = - .0645 + .4005 \theta_t .
Expand Down Expand Up @@ -1230,5 +1228,3 @@ print("(d_0, d_1) = ", clq.d0, clq.d1)
Evidently, these agree with the relationships that we discovered by running regressions on the Ramsey outcomes $\vec \mu^R, \vec \theta^R$ that we constructed with either of our machine learning algorithms.
We have set the stage for diving into this quantecon lecture {doc}`calvo`.

1 comment on commit 1f9288a

@github-actions
Copy link

Choose a reason for hiding this comment

The reason will be displayed to describe this comment to others. Learn more.

Please sign in to comment.