Module Catalogues, Xi'an Jiaotong-Liverpool University

Module Code: ECO229
Module Title: Dynamic Optimisation in Economics
Module Level: Level 2
Module Credits: 5.00
Semester: SEM2
Originating Department: International Business School Suzhou
Pre-requisites: ECO118ECO204

 Aims 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.
 Learning outcomes A Apply dynamic optimisation techniques to study of economic problemsB Demonstrate thorough understanding of differential equationsC Demonstrate ability to solve differential equations and find equilibriaD Demonstrate basic understanding of dynamic optimisation methods
 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.
 Syllabus 1. Review of multivariable optimisation2. Introduction to dynamics: recurrence relations3. Introduction to continuous-time dynamics: differential equations4. Concept of dynamic equilibrium and fixed points in dynamics5. Introduction to dynamic optimisation6. Variation calculus: An Introduction7. Euler equation and Lagrange techniques in Variation Calculus8. Introduction to Optimal Control9. Pontryaginâ€™s Maximum Principle10. Dynamic programming principle11. Application of optimal control to Dynamic Economics12. Applications of dynamic programming in Economics
Delivery Hours
 Lectures Seminars Tutorials Lab/Prcaticals Fieldwork / Placement Other(Private study) Total Hours/Semester 26 12 112 150

## Assessment

 Sequence Method % of Final Mark 1 Midterm Exam 30.00 2 In-Class Assessment 15.00 3 Final Exam 55.00
 Module Catalogue generated from SITS CUT-OFF: 6/5/2020 5:50:44 PM