The Recursive Approach
Introduction
An Overview
A Deterministic Model of Optimal Growth
A Stochastic Model of Optimal Growth
Competitive Equilibrium Growth
Conclusions and Plans
Deterministic Models
Mathematical Preliminaries
Metric Spaces and Normed Vector Spaces
The Contraction Mapping Theorem
The Theorem of The Maximum
Dynamic Programming under Certainty
The Principle of Optimality
Bounded Returns
Constant Returns to Scale
Unbounded Returns
Euler Equations
Applications of Dynamic Programming under Certainty
The One-Sector Model of Optimal Growth
A "Cake-Eating" Problem
Optimal Growth with Linear Utility
Growth with Technical Progress
A Tree-Cutting Problem
Learning by Doing
Human Capital Accumulation
Growth with Human Capital
Investment with Convex Costs
Investment with Constant Returns
Recursive Preferences
Theory of The Consumer with Recursive Preferences
A Pareto Problem with Recursive Preferences
An (s, S) Inventory Problem
The Inventory Problem in Continuous Time
A Seller with Unknown Demand
A Consumption-Savings Problem
Deterministic Dynamics
One-Dimensional Examples
Global Stability: Liapounov Functions
Linear Systems and Linear Approximations
Euler Equations
Applications
Stochastic Models
Measure Theory and Integration
Measurable Spaces
Measures
Measurable Functions
Integration
Product Spaces
The Monotone Class Lemma