### Textbooks

### Required

[SLP] = Stokey, Nancy L., and Robert E. Lucas, Jr., with Edward C. Prescott. *Recursive Methods in Economic Dynamics*. Cambridge, MA: Harvard University Press, 1989. ISBN: 9780674750968.

[Acemoglu] = Acemoglu, Daron. *Introduction to Modern Economic Growth*. Princeton, NJ: Princeton University Press, 2008. ISBN: 9780691132921.

### Recommended

Chiang, Alpha C. *Elements of Dynamic Optimization*. Long Grove, IL: Waveland Press, 1999. ISBN: 9781577660965.

Luenberger, David. *Optimization by Vector Space Methods*. New York, NY: Wiley-Interscience, 1997. ISBN: 9780471181170. First published in 1969 by John Wiley and Sons, Inc.

Kamien, Morton I., and Nancy L. Schwartz. *Dynamic Optimization: The Calculus of Variations and Optimal Control in Economics and Management*. 2nd ed. San Diego, CA: Elsevier, 1991. ISBN: 9780444016096.

### Readings by Session

SES # | TOPICS | READINGS |
---|---|---|

1-7 | Discrete time: deterministic models |
## Vector spaces[SLP] chapter 3. ## The principle of optimality[SLP] chapter 4.1 ## Concavity and differentiability of the value function[SLP] section 4.2. ## Euler equations[SLP] section 4.5 ## Deterministic dynamics[SLP] chapter 6. ## Models with constant returns to scale[SLP] section 4.3. ## Nonstationary models[Acemoglu] section 6.7. |

8-9 | Discrete time: stochastic models |
## Stochastic dynamic programming[SLP] sections 9.1 to 9.2. ## Stochastic Euler equations[SLP] section 9.5. ## Stochastic dynamics[SLP] section 9.6, chapters 11 and 12. |

10-12 | Continuous time |
## Calculus of variations[Acemoglu] section 7.1. ## The maximum principle[Acemoglu] sections 7.2 to 7.3. ## Discounted infinite-horizon optimal control[Acemoglu] section 7.5. ## Saddle-path stability[Acemoglu] section 7.8. |