Module Catalogues, Xi'an Jiaotong-Liverpool University   
 
Module Code: ECO229
Module Title: Dynamic Optimisation in Economics
Module Level: Level 2
Module Credits: 5.00
Academic Year: 2020/21
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 problems

B Demonstrate thorough understanding of differential equations


C Demonstrate ability to solve differential equations and find equilibria


D 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 optimisation

2. Introduction to dynamics: recurrence relations


3. Introduction to continuous-time dynamics: differential equations


4. Concept of dynamic equilibrium and fixed points in dynamics


5. Introduction to dynamic optimisation


6. Variation calculus: An Introduction


7. Euler equation and Lagrange techniques in Variation Calculus


8. Introduction to Optimal Control


9. Pontryagin’s Maximum Principle


10. Dynamic programming principle


11. Application of optimal control to Dynamic Economics


12. 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