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Dynamic Programming: An Introduction by Example

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  • Joachim Zietz

Abstract

The author introduces some basic dynamic programming techniques, using examples, with the help of the computer algebra system Maple . The emphasis is on building confidence and intuition for the solution of dynamic problems in economics. To integrate the material better, the same examples are used to introduce different techniques. One covers the optimal extraction of a natural resource, another uses consumer utility maximization, and the final example solves a simple real business cycle model. Every example is accompanied by Maple computer code to allow for replication.

Suggested Citation

  • Joachim Zietz, 2007. "Dynamic Programming: An Introduction by Example," The Journal of Economic Education, Taylor & Francis Journals, vol. 38(2), pages 165-186, April.
    • Handle: RePEc:taf:jeduce:v:38:y:2007:i:2:p:165-186
    DOI: 10.3200/JECE.38.2.165-186
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    References listed on IDEAS

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    1. Jerome Adda & Russell W. Cooper, 2003. "Dynamic Economics: Quantitative Methods and Applications," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262012014, December.
    2. Lars Ljungqvist & Thomas J. Sargent, 2004. "Recursive Macroeconomic Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 2, volume 1, number 026212274x, December.
    3. Kydland, Finn E & Prescott, Edward C, 1982. "Time to Build and Aggregate Fluctuations," Econometrica, Econometric Society, vol. 50(6), pages 1345-1370, November.
    4. King, Ian, 2002. "A Simple Introduction to Dynamic Programming in Macroeconomic Models," Working Papers 190, Department of Economics, The University of Auckland.
    5. Long, John B, Jr & Plosser, Charles I, 1983. "Real Business Cycles," Journal of Political Economy, University of Chicago Press, vol. 91(1), pages 39-69, February.
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    Cited by:

    1. Kuroki, Masanori, 2021. "Using Python and Google Colab to teach undergraduate microeconomic theory," International Review of Economics Education, Elsevier, vol. 38(C).

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    More about this item

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • A23 - General Economics and Teaching - - Economic Education and Teaching of Economics - - - Graduate

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