Dynamic Optimization & Economic Applications (Recursive Methods)

Photograph of four coins laid flat between the points of a caliper.

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

Instructor(s)

MIT Course Number

14.128

As Taught In

Spring 2003

Level

Graduate

Cite This Course

Course Description

Course Features

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.

Related Content

Iván Werning. 14.128 Dynamic Optimization & Economic Applications (Recursive Methods). Spring 2003. Massachusetts Institute of Technology: MIT OpenCourseWare, https://ocw.mit.edu. License: Creative Commons BY-NC-SA.


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