Koofers

Lecture Notes for ECN 200E - Macro Theory with Salyer at UC Davis (UCD)

Notes Information

Material Type:Class Note
Professor:Salyer
Class:ECN 200E - Macro Theory
Subject:Economics
University:University of California - Davis
Term:Spring 1998
Keywords:
  • Special Case
  • Progression
  • Convenience
  • Consumption
  • Substituting
  • Current Period
  • Necessary Condition
  • Differentiate
  • Uncorrelated
  • Interpretation
Login / Sign Up to View Document
Preview Page 1Preview Page 2Preview Page 3Preview Page 4Preview Page 5Preview Page 6

Sample Document Text

Lecture Notes on Dynamic Programming Economics 200E, Professor Bergin, Spring 1998 Adapted from lecture notes of Kevin Salyer and from Stokey, Lucas and Prescott (1989) Outline 1) A Typical Problem 2) A Deterministic Finite Horizon Problem 2.1) Finding necessary conditions 2.2) A special case 2.3) Recursive solution 3) A Deterministic Infinite Horizon Problem 3.1) Recursive formulation 3.2) Envelope theorem 3.3) A special case 3.4) An analytical solution 3.5) Solution by conjecture 3.6) Solution by iteration 4) A Stochastic Problem 4.1) Introducing uncertainty 4.2) Our special case again 4.3) Finding distributions 1 1. A Typical Problem Consider the problem of optimal growth (Cass-Koopmans Model). Recall that in the Solow model the saving rate is imposed, and there is no representation of preferences. The optimal growth model adds preferences for households, and derives an optimal saving rate. Utility is maximized for the representative agent, given the technology that they're faced w...

Related Documents

The Independent Notes
Secondary Authority Notes
Reverse Marketing Notes
Steady State Notes
Physiocrats Exam
Physiocrats Exam
Pull Policy Notes
Assignment of Income Doctrine Notes
Physiocrats Exam
Autoeroticism Notes
The Independent Notes
Reverse Marketing Notes
Economic Environment Notes
Time Utility Notes
Idiosyncratic Exam
Secondary School Notes
155, "/var/app/current/tmp/"