DIXIT THE ART OF SMOOTH PASTING PDF

A very short book that is beautifully crafted to take the reader quite far. It provides a heuristic introduction to Ito's lemma and stochastic optimal control. The Art of Smooth Pasting. This book aims to widen the understanding of stochastic dynamic choice and equilibrium models. It offers a simplified and heuristic exposition of the theory of Brownian motion and its control or regulation, rendering such methods more accessible to economists who do not require a detailed, mathematical treatment of the subject. The main mathematical ideas are presented in a context which with which economists will be familiar.

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Art of Smooth Pasting

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A very short book that is beautifully crafted to take the reader quite far. It provides a heuristic introduction to Ito's lemma and stochastic optimal control. The Art of Smooth Pasting. Avinash K. The main mathematical ideas are presented in a context with which economists should be familiar. Using a binomial approximation to Brownian motion, the mathematics is reduced to simple algebra, progressing to some equally simple limits.

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