Aims and Fit of Module
This module aims at introducing students to the dynamic methods of analysis in Economics. First basic concepts of differential equations are introduced together with notions of dynamic equilibrium. The second half of the course introduces main methods of dynamic optimisation as used in economic problems: optimal control methods and dynamic programming. These are illustrated with applications to different economic problems at macro and micro levels.
A. Demonstrate understanding of differential equations
B. Demonstrate ability to solve differential equations and find equilibria
C. Demonstrate basic understanding of dynamic optimisation methods
D. Apply dynamic optimisation techniques to study of economic problems
Method of teaching and learning
The module will be delivered via a combination of lectures and tutorials.
Lectures will be delivered every week, which will be designed to provide essential information and introduce students to the basic tools of optimisation (both static and dynamic).
Tutorials will consolidate and extend the material introduced in the lectures. Students are expected to be able to identify the problem, set up the formal optimisation task and solve it.
In-class work would include solving some exercises both by the tutor and by students.