Dynamic Programming on a Quantum Annealer: Solving the RBC Model /
Fernández-Villaverde, Jesús.
Dynamic Programming on a Quantum Annealer: Solving the RBC Model / Jesús Fernández-Villaverde, Isaiah J. Hull. - Cambridge, Mass. National Bureau of Economic Research 2023. - 1 online resource: illustrations (black and white); - NBER working paper series no. w31326 . - Working Paper Series (National Bureau of Economic Research) no. w31326. .
June 2023.
We introduce a novel approach to solving dynamic programming problems, such as those in many economic models, on a quantum annealer, a specialized device that performs combinatorial optimization. Quantum annealers attempt to solve an NP-hard problem by starting in a quantum superposition of all states and generating candidate global solutions in milliseconds, irrespective of problem size. Using existing quantum hardware, we achieve an order-of-magnitude speed-up in solving the real business cycle model over benchmarks in the literature. We also provide a detailed introduction to quantum annealing and discuss its potential use for more challenging economic problems.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.
Computational Techniques • Simulation Modeling
Bargaining Theory • Matching Theory
Forecasting and Simulation: Models and Applications
Dynamic Programming on a Quantum Annealer: Solving the RBC Model / Jesús Fernández-Villaverde, Isaiah J. Hull. - Cambridge, Mass. National Bureau of Economic Research 2023. - 1 online resource: illustrations (black and white); - NBER working paper series no. w31326 . - Working Paper Series (National Bureau of Economic Research) no. w31326. .
June 2023.
We introduce a novel approach to solving dynamic programming problems, such as those in many economic models, on a quantum annealer, a specialized device that performs combinatorial optimization. Quantum annealers attempt to solve an NP-hard problem by starting in a quantum superposition of all states and generating candidate global solutions in milliseconds, irrespective of problem size. Using existing quantum hardware, we achieve an order-of-magnitude speed-up in solving the real business cycle model over benchmarks in the literature. We also provide a detailed introduction to quantum annealing and discuss its potential use for more challenging economic problems.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.
Computational Techniques • Simulation Modeling
Bargaining Theory • Matching Theory
Forecasting and Simulation: Models and Applications