Mat-2.194 Summer school on systems sciences

Optimal Control of Economic Dynamics

The course lectures:
  • Deal with analytic methods for the solution of decision problems in continuous time
  • Give a comprehensive study of dynamic optimization techniques of the calculus of variations and of optimal control theory
  • Are devoted to expositing the techniques and illustrating their range of application in economics and management science
Time and place: The course takes place on May 12th-20th at the Helsinki University of Technology (room U356). The daily program includes lectures (9.15-12.00), starting May 12, and exercises (12.45-14.15) on May 13, 15, 18 and 19.
Teachers: Lectures are given by Professor Gustav Feichtinger, Vienna University of Technology. Exercises are given by Mr. Gerald Karner, visiting HUT from the Vienna University of Technology.
Course material: The course material will be delivered during the course.
Passing procedure: 1. Active participation in the lectures and exercises and passing the examination gives 3 credit unit.
2. Participation only gives 1 credit unit.
NOTE! This course can be used to replace the course Mat-2.148 Dynamic opimization in the HUT master's program (passing procedure 1).
Participants: Master's and doctoral students of the HUT and other universities. The course is also open to all others interested in the subject.
Preliminary program: 1. Standard optimal control problem; intertemporal decision processes, examples
2. A heuristic proof of the maximum principle; economic interpretation of the necessary optimality condition, sufficient conditions, infinite time horizon, free terminal time
3. Linear optimal control problem; most rapid approach paths, examples
4. Phase phase analysis of low-dimensional optimal control problems; existence, uniqueness and sensitivity of equilibria, multible equilibria, Skiba points
5. Path constraints; mixed path constraints, pure state constraints
6. Applications; optimal growth theory, environmental pollution, marketing (optimal advertising and pricing)
7. A case study: The economics of crime; corruption, optimal law enforcement, illicit drug control
Further information: Associate Prof. Harri Ehtamo, phone 4513058; Mr. Gerald Karner; Mr. Kai Virtanen.

Viimeksi päivitetty 24.2.1998
Sivun sisällöstä vastaa Kai Virtanen