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Dynamic Optimization & Economic Applications (Recursive Methods)

Description

The unifying theme of this course is greatest captured by the title of our most important reference e-book: “Recursive Strategies in Economic Dynamics”. We begin by overlaying deterministic and stochastic dynamic optimization utilizing dynamic programming evaluation. We then examine the properties of the ensuing dynamic techniques. Lastly, we’ll go over a recursive technique for repeated video games that has confirmed helpful in contract idea and macroeconomics. We will stress purposes and examples of all these methods all through the course.


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