On successful completion of this module, students will be able to:

Solve systems of differential/difference equations and describe their dynamic properties;

Describe the basics of dynamic optimisation;

Derive the optimality conditions of different growth models and interpret their economic implications;

Interpret the transitional dynamics of each model and explain how these are affected by the underlying assumptions;

Module Content

Math review;

The Solow growth model;

Foundations of Neoclassical growth;

The Neoclassical growth model;

The goal of this module is to familiarise student swith some applications of dynamic analysis in economics. The course will be divided in two parts. First part will review the basics of dynamic analysis. The second part will study dynamic macroeconomic models giving particular attention to economic growth.

Module Prerequisite

MA3481 - Mathematical Economics I

Recommended Reading

Daron Acemoglu, Introduction to Modern Economic Growth, Princeton University Press, 2009

Assessment Detail

This module will be examined jointly with MA3481
in a 3-hour examination in Trinity term,
except that those taking just one of the
two modules will have a 2 hour examination. Continuous assessment
will contribute 10% to the final grade for the module at the annual
examination session.