QuantEcon / QuantEcon/QuantEcon.py

Doubling algorithm not working for solving discrete Lyapunov equation

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Description

For a specific example borrowed from RMT5 (example 3 in section 2.4), the doubling algorithm is unable to find the correct solution to the discrete Lyapunov equation while Bartels-Stewart algorithm (the scipy routine) is able to find one.

The demonstration of the failure is here.

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Research direction

Reproduce the failure shown in failure_of_doubling_algorithm.ipynb, using the RMT5 example 3 from section 2.4. Compare the doubling algorithm's result with the solution from the scipy Bartels-Stewart routine and identify why the discrete Lyapunov solution is incorrect. Done means the doubling algorithm finds the correct solution for this example.

Written by the indexing model from the issue text.

Assessment

Tech stack
python
Domain
backend
Issue type
Bug
Difficulty
4/5
Estimated time
3-5 days
Activity status
Stale
Clarity
Needs clarification
Newbie friendliness
35/100

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