Accuracy of Numerical Solutions Using the Euler Equation Residuals
证明政策函数的近似误差与欧拉方程残差量级相同，并指出贴现因子和回报函数曲率是关键参数，为评估计算方法性能提供了理论基础。
This paper is concerned with asymptotic properties on the accuracy of numerical solutions. It is shown that the approximation error of the policy function is of the same order of magnitude as the size of the Euler equation residuals. Moreover, for bounding this approximation error the most relevant parameters are the discount factor and the curvature of the return function. These findings provide theoretical foundations for the construction of tests to assess the performance of alternative computational methods.