Online Appendix for “Agency Models with Frequent Actions: A Quadratic Approximation Method”
نویسندگان
چکیده
Lemma 17 Suppose that Θ(ā, h̄ ≥ θ > 0 for all ā > 0. (i) For any initial conditions F (w) and F ′(w) the HJB equation (3) has a unique solution F in any interval [w, w̄] ⊂ R. (ii) F is twice continuously differentiable and (F, F ′) depends continuously on the initial conditions. (iii) F ′ is monotone with respect to F ′(w). That is, if F1 and F2 are two solutions of the HJB equation in an interval [w, w̄] ⊂ R with F1(w) = F2(w) and F ′ 1(w) > F ′ 2(w), then F ′ 1(w) > F ′ 2(w) (and hence F1(w) > F2(w)) for all w > w.
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