武大讲义-DynamicoptimizationI..doc

Dynamic Optimization Department of Economics Economics and Management School Wuhan University Fall, 2007 Vey Wang王葳wangwei@fcu.edu.tw Feng Chia University逢甲大學, Taiwan 407台中市西屯區文華路100號 Contents Differential Equations I: First-Order Equations in One Variable Differential Equations II: Second-Order Equations and Systems in the Plane Differential Equations III: Higher-Order Equations Calculus of Variations Control Theory: Basic Techniques Control Theory with Many Variables Difference Equations Discrete Time Optimization References Further Mathematics for Economic Analysis, Ch.5-12, Knut Syds?ter, Peter Hammond, Atle Seierstad and Arne Strm, Prentice Hall. Economic Dynamics－Phase diagrams, and their economic application, Ronald Shone, Cambridge University Press. Optimal Control Theory and Static Optimization in Economics, Daniel Leonard and Ngo Van Long, Cambridge University Press. 賴景昌，國際金融理論(進階篇)，總體經濟學授課講義。 張文雅，貨幣與經濟成長，經濟學門學術研習營。 The economic world is a misty region. The first explorers used unaided vision. Mathematics is the lantern by which what was before dimly visible now looms up in firm, bold outlines. The old phantasmagoria disappear. We see better. We also see further. － Irving Fisher (1892) I came to the position that mathematical analysis is not one of many ways of doing economic theory: It is the only way. Economic theory is mathematical analysis. Everything else is just pictures and talk. － R.E. Lucas, Jr. (2001) Wisdom and maturity are the last settlers in pioneering communities. － P. A. Samuelson (1985) If, then, in Political Economy we have to deal with quantities and complicated relations of quantities, we must reason mathematically; we do not render the science less mathematical by avoiding the symbols of algebra … － Jevons (1871) I don’t know mathematics, therefore I have to think. － Joan Robinson Dynamical systems have spread so widely into macroeconomics that vector fields