14.128 Dynamic Optimization & Economic Applications (Recursive Methods)

Spring 2003

Photograph of coins in a caliper.
Photograph of coins in a caliper. (Courtesy of Daniel Bersak.)

Course Highlights

This course includes lecture slides and problem sets.

Course Description

The unifying theme of this course is best captured by the title of our main reference book: ‘Recursive Methods in Economic Dynamics’. We start by covering deterministic and stochastic dynamic optimization using dynamic programming analysis. We then study the properties of the resulting dynamic systems. Finally, we will go over a recursive method for repeated games that has proven useful in contract theory and macroeconomics. We shall stress applications and examples of all these techniques throughout the course.

Technical Requirements

File decompression software, such as Winzip or StuffIt, is required to open the .zip files found on this course site. The .zip file contains additional files which require software as well.
MATLAB® software is required to run the .m files found on this course site.


MATLAB® is a trademark of The MathWorks, Inc.

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Staff

Instructor:
Prof. Iván Werning

Course Meeting Times

Lectures:
Two sessions / week
1.5 hours / session

Level

Graduate