Replication folder for “Optimal Contract Design and Securities Implementation with Dynamic Investment and Learning”

This repository contains MATLAB code for numerical analysis and simulation of optimal contract design in small and medium-sized enterprises (SMEs) with dynamic investment decisions and Bayesian learning mechanisms. The code implements the theoretical framework described in the accompanying research paper, solving the Hamilton-Jacobi-Bellman (HJB) equation to derive optimal contracts, investment policies, and incentive structures.