Introduction to Economic Dynamics

Description

This undergraduate compulsory-choice course builds on the compulsory modules in basic micro- and macroeconomics. Its subject is extensions of the analysis of familiar topics to adjustment and stability problems. For this reason, on the agenda are not (only) the computation of equilibria, but (also) questions of whether the economic agents (or, depending on the activity level under consideration, the market or the economy) come to equilibrium and how the latter is attained. In other words, the course introduces into dynamic economic theory. That is why methods are applied here which are dispensable in static theory. Typically, the main point in dynamic analysis is that changes in a variable depend on the variable's level. Such topics are analyzed by means of difference (discrete time) and differential (continuous time) equations.
It is assumed that students have already attended most of the undergraduate lectures in economics. Furthermore, it is recommended that interested students attend the undergraduate math courses beforehand. No previous knowledge of difference and differential equations is required.

Literature

Chiang, Alpha C., Wainwright, Kevin, Fundamental Methods of Mathematical Economics. Fourth Edition. New York 2005.

Gandolfo, Giancarlo, Economic Dynamics. Study Edition. Berlin, Heidelberg, New York 1997.

Hoy, Michael u.a., Mathematics for Economics. Second Edition. Cambridge und London 2001.

De la Fuente, Angel, Mathematical Methods and Models for Economists. Cambridge 2000.

Opitz, Otto, Mathematik. Lehrbuch für Ökonomen. 9. Aufl. München 2004.

Shone, Ronald, Economic Dynamics. Phase Diagramms and their economic Applications. Second Edition. Cambridge 2002, Chap. 1-4, 7-8.