This course develops techniques useful in modeling dynamic economies, with specical reference to firm growth and industry evolution. The methodological toolkit addresses decision making in both static and dynamic environments. The static models supplement 90-908 Microeconomic Analysis, in a way that will be particularly valuable to students of entrepreneurship and technological change, by focusing on consumer and firm decisions in a world of product differentiation. Models of dynamic decision making include continuous-time and discrete time frameworks, in both deterministic and stochastic environments. Applications culled from classic and recent literature reveal how these techniques are employed in theoretical research and how they help organize empirical research.
