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.
Werning, IvÃ¡n. 14.128 Dynamic Optimization , Spring 2003. (Massachusetts Institute of Technology: MIT OpenCourseWare),http://ocw.mit.edu (Accessed 30 Jul, 2012). License: Creative Commons BY-NC-SA