Dynamic Optimization
Schedule for Spring 2010 (subject to change)

Lecture

Date

Topic

Readings

Hwk

1

1/11

Introduction, Notation and Approach

S1, LL 1, KS I.1

2

1/13

Static vs. Dynamic Optimization

S2, KS I.3+I.4

1/18

MLK Day - no class

3

1/20

The Calculus of Variations

S2, KS I.3+I.4

4

1/25

Calculus of Variations - examples

S2, KS I.3+I.4

5

1/27

Transversality Conditions

S3, LL 7

6

2/01

Equations of Motion

S4, LL 2.1-2.3, KS B1-4

#1

7

2/03

Ito Calculus

8

2/08

Stochastic Equations of Motion

S4, Kall and Wallace

 

9

2/10

Economic Growth, Part 1 (Exogenous)

S6, LL 3, KS II.1-II.3

 

10

2/15

Economic Growth, Part 2 (Exogenous)

S6, LL 3, KS II.1-II.3

11

2/17

Economic Growth, Part 3 (Endogenous)

S6, LL 3, KS II.1-II.3

12

2/22

Optimal Control, Part 1

S7, LL 2.4-2.5, KS B5

#2

13

2/24

Optimal Control, Part 2

S7, Dorfman

14

3/01

Optimal Control in a Spreadsheet

S8

15

3/03

Dynamic Stability

S9, S10, Caputo

16

3/08

Optimal Control: Further Refinement

S11

17

3/10

Dynamic Macroeconomics

S12, Turnovsky

#3

3/15

Spring Break - no class

3/17

Spring Break - no class

18

3/22

Introduction to Dynamic Programming

S13

19

3/24

Generalized Resource Allocation 

S13

20

3/29

Finite-horizon Deterministic DP

S14

21

3/31

Finite-horizon Stochastic DP

S16, Burt

#4

 

4/05

Class cancelled

22

4/07

Infinite-Horizon DP

S17, Kennedy

23

4/12

DP Solution Strategies

S18, Pfeifer

24

4/14

Irreversible Investment

S22, Able & Eberly

#5

25

4/19

Final Exam in class

4/29

Review paper due by 5pm in KRAN 656

S=Shively
KS=Kamien and Schwartz
LL=Leonard and Van Long