Course Outline

  1. Preliminaries; Euler Equations and Transversality Conditions; Principle of Optimality
  2. Bounded Returns; Differentiability of Value Function; Homogenous and Unbounded Returns; Applications
  3. Deterministic Global and Local Dynamics
  4. Weak Convergence; Applications
  5. Repeated Games and Dynamic Contracts
  6. Continuous-Time Dynamic Programming

Reference Books

  1. Kamien, Morton I. and Nancy L. Schwartz. Dynamic Optimization: The Calculus of Variations and Optimal Control in Economics and Management. Elsevier.
  2. Luenberger, David. Optimization by Vector Space Methods. Wiley-Inter Science.
  3. Stokey, Nancy L. and Robert E. Lucas and Edward C. Prescott. Recursive Methods in Economic Dynamics. Harvard University Press.