Optimal Control

Optimal control is the standard technique for solving dynamic optimization problems in deterministic environments set in continuous time. This module builds directly on the module on differential equations.
The problem set for this section can be found here (parts of this problem set will be due at different dates TBA in class).

 Methodological Texts
Chiang, Alpha C. (1992): "Elements of Dynamic Optimization." New York: McGraw-Hill. 
Kamien, Morton I. and Nancy L. Schwartz (1981): Dynamic Optimization: The Calculus of Variations and Optimal Control in Economics and Management. Amstedam: North-Holland
Dorfman, Robert (1969): An Economic Interpretation of Optimal Control Theory." American Economic Review, 59:817-31.

 Applications in Articles
Davis, Blaine E. (1970): "Investment and Rate of Return for the Regulated Firm." The Bell Journal of Economics and Management Science, 1(2):245-270.
Bhattacharya, Jayanta, and William B. Vogt (2002): "A simple model of phramaceutical price dynamics." mansucript.
Levin, Sharon G., and Paula E. Stephan (1991): "Research productivity over the life cycle: evidence for academic scientists." American Economic Review, 81(1):114-132.
Lucas, Robert E. Jr. (1988): "On the Mechanics of Economic Development." Journal of Monetary Economics, 22:3-42.
Jones, Charles I., and John C. Williams (2000): "Too Much of a Good Thing? The Economics of Investment in R&D" Journal of Economic Growth, 5:65-85
Abel, Andrew B. (1982): "Dynamic effects of permanent and temporary tax policies in a q model of investment." Journal of Monetary Economics, 9:353-373.