Simula@BI: Dynamic Programming on a Quantum Annealer: Solving the RBC Model

Speaker: Visiting Associate Professor of Finance Isaiah Hull, Sveriges Riksbank, BI Norwegian Business School

  • Starts:12:00, 25 October 2022
  • Ends:13:00, 25 October 2022
  • Location:At BI, C2-030
  • Contact:Siri Johnsen (siri.johnsen@bi.no)

We introduce a novel approach for solving dynamic programming problems on a quantum annealer, which is a specialized device that performs combinatorial optimization. Quantum annealers attempt to solve an NP-hard problem, start in a quantum superposition of all states, and generate candidate global solutions in milliseconds, irrespective of problem size. Although quantum annealers are not yet a mature technology, we demonstrate that the current vintage of devices is already capable of achieving 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 future use on more challenging economic problems.

The full paper is available on his coauthor's website:

In addition to this, Hull will also provide a very brief introduction to quantum computing at the start of the presentation. It will be based on the paper Quantum Technology for Economists.