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Faithful Decoding

Author

Listed:
  • Nisha Peng
  • John Stachurski
  • Jingni Yang
  • Ziyue Yang

Abstract

This paper studies transformations that increase efficiency in solving equilibrium systems without information loss. Our approach exploits order-theoretic structure commonly found in economic problems to obtain conditions under which high-dimensional systems can be transformed into low-dimensional systems while preserving exact relationships between their solutions. The transformations can also be used for purposes other than dimensionality reduction, such as simplifying analysis and facilitating stochastic approximation routines. The theoretical ideas are illustrated using applications from economics and finance. In a real option problem, we demonstrate speed gains of up to 70,000 times.

Suggested Citation

  • Nisha Peng & John Stachurski & Jingni Yang & Ziyue Yang, 2026. "Faithful Decoding," Papers 2607.17073, arXiv.org.
    • Handle: RePEc:arx:papers:2607.17073
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    References listed on IDEAS

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