This is the readme for is-solver, a dynamic program solver which solves a my particular dynamic program. Particularly, it solves my capital structure model with permanent and transitory shocks.
See my website, <www.econsteve.com>, for more documentation.
The theory of this is mainly inspired by several papers.
- DeAngelo, DeAngelo, and Whited 2011 - this describes the adjustment-cost based models of capital structure
- Strebulaev and Gorbenko 2011 - this describes permanent and transitory shocks in a different sort of capital structure model
The code for this project is mainly based on the solve*.cpp files. The project depends on Eigen.