We implement column-by-column calculation:
from j=1 to
n
to one of the following:
0: no
1:error bounds
2:policy iterations
3:policy iterations with error bounds
4:modified policy iterations
5:modified policy iterations with error bounds
And then we smooth out the points on the grid by one of the following ways:
0:linear interpolation
1:polynomial
2:LOESS
3:LOWESS
4:Kernel regression
5:Smoothing natural spline
6:NURBS
7:Bezier Curve
We can get almost perfect result by combining the two but we can increase the number
of n on the gird depending on which to choose the smoothing method.