Dynamic Optimization & Economic Applications (Recursive Methods)

Photograph of four coins laid flat between the points of a caliper.

Photograph of coins in a caliper. (Courtesy of Daniel Bersak.)


MIT Course Number


As Taught In

Spring 2003



Cite This Course

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.

Werning, Iván. 14.128 Dynamic Optimization & Economic Applications (Recursive Methods), Spring 2003. (MIT OpenCourseWare: Massachusetts Institute of Technology), http://ocw.mit.edu/courses/economics/14-128-dynamic-optimization-economic-applications-recursive-methods-spring-2003 (Accessed). License: Creative Commons BY-NC-SA

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