Value function approximation and collocation method

 

Today we change the functional form of approximation.

 

A bad approximate may lead to convergence as it is.

 

The approximation with higher order tends to fit better but it will take longer.

 

We usually consider the following form:

 

 

After taking logarithm, the following semi-log polynomial:

 

 

may fit better even for a lower order.

 

We can consider the following form:

 

 

as a variation.