Stata Recursive problem, Bellman equation

Hi all,

I need some help with estimating a Bellman equation for a optimal consumption in stata. Does anyone know how to do this?

- How do I define a dynamic discrete model choice?
Try implementing value function iteration using Mata (Stata's matrix programming language), based on some problem/notes you have (or can find). For example, the following notes from Jerome Adda, use very basic Matlab and comment on the general algorithm:

The problem to solve is the cake-eating problem. Run -help mata- for an introduction to Mata. You only need basic Mata to solve this.