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I am looking for some tutorial (website, book, video or even answer that explains it directly) that explains how to solve dynamic constrained optimization problem with state switching. Preferably the tutorial explains this in macro (economic growth) context, but any tutorial would be helpful. I am familiar with dynamic optimization without state switching but I don't know how to incorporate state switch between 2 different production functions. Does someone have good reference?

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  • $\begingroup$ I don't know what that is but maybe this helps or the references in it help ? sciencedirect.com/science/article/abs/pii/S0005109822006136 It's not available free as far as I could tell. $\endgroup$
    – mark leeds
    Dec 6, 2023 at 12:20
  • $\begingroup$ @markleeds yes that is the topic but I am looking for tutorial. That paper is not very student friendly. Do you know some resource that walks reader through it? $\endgroup$ Dec 25, 2023 at 0:04
  • $\begingroup$ Hi Lorenzo: It's totally not my field. What I would do is look for papers that already do that type of thing. The problem is that I'm not familiar enough with the literature to figure out a good google search term besides the obvious. $\endgroup$
    – mark leeds
    Dec 25, 2023 at 13:43
  • $\begingroup$ Hi: I googled for "production functions and regime switching" and this came up. So variants of that might lead to something. mdpi.com/2227-7390/11/20/4307 $\endgroup$
    – mark leeds
    Dec 25, 2023 at 13:47

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