Dynamic problem solving in economics and business
- By the end of the course, students will understand the basics of dynamic programming and will be able to define and solve problems with intertemporal trade-offs.
- Students know the standard methods for the solution of problems with intertemporal trade-offs.
- Students know the problems with intertemporal trade-offs, which require to weight costs of the current decisions against the benefits of the future outcomes, have extremely wide applicability in various disciplines of economic science.
- Students understand the basics of dynamic programming, a method of solving problems with intertemporal trade-offs.
- Students can see how dynamic programming can be applied to a wide range of real-life situations, and then move to some of the most popular (macro) economic applications of the method.
- Students are familiar with real-life applications, particularly how dynamic programming techniques can be used in the airline industry or revenue management applications.
- 1. Introduction to Dynamic Programming, Part 1.
- 2. Introduction to Dynamic Programming, Part 2.
- 3. DP in (Macro)Economics, Part 1.
- 4. DP in (Macro)Economics, Part 2
- 5. Numerical Methods.
- 6. Introduction to the problem of optimal control.
- 7. DP Applications.
- 2023/2024 2nd module0.5 * Final Exam + 0.25 * Midterm/Exam Sample Tasks + 0.15 * Homework Sample Task + 0.1 * In-class Participation
- Adda, J., & Cooper, R. W. (2003). Dynamic Economics : Quantitative Methods and Applications. Cambridge, Mass: The MIT Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=100029
- Bertsekas, D. P. (2017). Stable Optimal Control and Semicontractive Dynamic Programming.
- Chiang, A. C. (2012). Elements of dynamic optimization. Waveland Press.
- Kenneth L. Judd. (1998). Numerical Methods in Economics. The MIT Press.
- Chow, G. C. (1997). Dynamic Economics : Optimization by the Lagrange Method. New York: Oxford University Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=176360
- Elements of Dynamic Optimization, 327 p., Chiang, A. C., 1992
- Elements of dynamic optimization, Chiang, A. C., 1992
- Numerical methods in economics, Judd, K. L., 1998
- Numerical methods in economics, Judd, K.L., 1998
- The theory and practice of revenue management, Talluri, K. T., 2004