This textbook, written by Daniel Leonard from the University of New South Wales, focuses on optimal control theory and is designed to make this complex subject accessible to economists. It covers both basic concepts and advanced topics in optimal control and control theory in an economic context.
Description
Optimal control is an increasingly important method in economics for analyzing optimal decisions in multi-period models. This book combines clear economic intuition with rigorous theoretical foundations. Step by step, fundamental principles are developed, followed by topics such as control parameters, jumps in state variables, and constrained state spaces. Optimal control is introduced directly without the calculus of variations, which is discussed in a separate chapter along with dynamic programming. Economic optimizations and static optimizations are presented side by side. It also covers important methods such as the envelope theorem and comparative statics, making this book useful for different economics courses. No prior knowledge of differential equations is required.
Product information
- Author: Daniel Leonard (University of New South Wales, Sydney)
- Publisher: Cambridge University Press
- Binding: Trade paperback (US)
- Publication date: 1992-01-31
- Number of pages: 368
- ISBN: 9780521337465
- Subject: Macroeconomics
- BISAC: BUSINESS & ECONOMICS / Economics / Macroeconomics