Optimal Control Theory and Static Optimization in Economics

This textbook is designed to make the difficult subject of optimal control theory accessible to economists while maintaining rigour.

Contenu

1. Static optimization; 2. Ordinary differential equations; 3. Introduction to dynamic optimization; 4. The Maximum principle; 5. Connections with the calculus of variations and dynamic programming; 6. The constrained control problem; 7. Endpoint constraints and transversality conditions; 8. Discontinuities in the optimal controls; 9. Infinity horizon problems; 10. Three special topics.