14.451 Dynamic Optimization Methods with Applications

As taught in: Fall 2009

Photograph of a hand holding an Apple iPhone displaying a screen of icons for various apps.

Apple iPhone. See Problem Set 3 for a problem about how to maximize the present value of revenues for iPhones by using dynamic optimization to determine the price. (Image by MightyMac <3 on Flickr.)

Level:

Graduate

Instructors:

Prof. Guido Lorenzoni

Course Features

Course Description

This course focuses on dynamic optimization methods, both in discrete and in continuous time. We approach these problems from a dynamic programming and optimal control perspective. We also study the dynamic systems that come from the solutions to these problems. The course will illustrate how these techniques are useful in various applications, drawing on many economic examples. However, the focus will remain on gaining a general command of the tools so that they can be applied later in other classes.