Postgraduate course
2020/2021
Dynamic Optimization for Economics and Management Studies
Type:
Elective course
Area of studies:
Economics
Delivered by:
Department of Management
When:
1 year, 1 semester
Mode of studies:
offline
Instructors:
Igor Sloev
Language:
English
ECTS credits:
3
Contact hours:
28
Course Syllabus
Abstract
This course covers topics in dynamic optimization methods which might be relevant for applied business research: investment decisions, pricing etc. It discovers and explores cases both in discrete and in continuous time. The methodological approaches address methods in dynamic programming and optimal solutions across infinite/finite time horizons. The course illustrates how dynamic optimization is useful for business strategies development on a rigorous analytical base
Learning Objectives
- As a result of successful learning students are: 1. to differentiate dynamic optimisation methods 2. to distinguish situations where dynamic optimisation methods can be used 3. to apply dynamic optimization techniques for different business problems 4. to construct Bellman equation and find close-form solution if possible 5. to estimate Bellman equation
Expected Learning Outcomes
- Be able to design new courses within the professional field which could be also based on finished research theoretical and empirical projects
- Be able to conduct research activity in an educational institutions and management of students' research activity
Course Contents
- 1. Types of dynamic optimization problems.Discrete/continuous time, finite/infinite horizon of planning, finite/infinite number of states, stochastic/deterministic problems.
- 2. Principle of optimality and Bellman equationSolutions for different types of problems.
- 3. Applications of dynamic optimization in Management.
Assessment Elements
- In class presentation
- Midterm exam assessment
- Written assignment on analysis of an academic paper
Interim Assessment
- Interim assessment (1 semester)0.4 * In class presentation + 0.3 * Midterm exam assessment + 0.3 * Written assignment on analysis of an academic paper
Bibliography
Recommended Core Bibliography
- Adda, J., & Cooper, R. W. (2003). Dynamic Economics : Quantitative Methods and Applications. Cambridge, Mass: The MIT Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=100029
Recommended Additional Bibliography
- Chow, G. C. (1997). Dynamic Economics : Optimization by the Lagrange Method. New York: Oxford University Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsebk&AN=176360
- Chow, G. C. (1997). Dynamic Economics: Optimization by the Lagrange Method. Oxford University Press. Retrieved from http://search.ebscohost.com/login.aspx?direct=true&site=eds-live&db=edsrep&AN=edsrep.b.oxp.obooks.9780195101928