Collocation method with transition matrices

We generalize the program for any model in terms of x:

but

for the first group of period of time

for the second group of period of time

.

.

.

for the ns-th group of period of time.

Here, we also change the corresponding parameter A’s and Q’s across breaks.

We set function fc differently in terms of A and Q rather than theta alone.

That is, we set

fc(K,K1,paras)=paras[1]*K^alpha-(K1-(1-delta)*K)/paras[2]

rather than

fc(K,K1,A,Q)=A*K^alpha-(K1-(1-delta)*K)/Q.