Photograph of coins in a caliper. (Courtesy of Daniel Bersak.)
Instructor(s)
Prof. Iván Werning
MIT Course Number
14.128
As Taught In
Spring 2003
Level
Graduate
Course Description
Course Features
Course Description
The unifying theme of this course is best captured by the title of our main reference book: "Recursive Methods in Economic Dynamics". We start by covering deterministic and stochastic dynamic optimization using dynamic programming analysis. We then study the properties of the resulting dynamic systems. Finally, we will go over a recursive method for repeated games that has proven useful in contract theory and macroeconomics. We shall stress applications and examples of all these techniques throughout the course.