Beyond curse of dimensionality

 

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.