Control theory note(s) for tomorrow ... (that nobody requested?)
I realize I should have updated control theory notes, and in particular for tomorrow, as last year's 2nd note starts with "We did not cover" ... Likely last year's typewritten note is better, so the following plan references that one:
- We have already: the problem and the necessary conditions (page 2 on that note).
(Footnote 3 assumes knowledge of all the catches of Kuhn--Tucker, ignore for now.) - Tomorrow:
- Review the cookbook (top of page 3)
- Sufficient conditions (page 3): we have two sufficiency tools. You need to know both.
- Sensitivity results: the interpretation of p. First half of page 7.
- Examples will be taken from pp. 4-5.
- The current-value formulation (if time permits).
Suppose there is exponential discounting in running utility; what we have done this far, is in terms of present value discounted to initial time. Alternatively:
Express everything in terms current at time t.
Advantages: if exp discounting is the only explicit "t"-dependence, then it is eliminated and we get an autonomous system. (And, economists often want to characterize your choice at time t by what you have at time t.)
Disadvantage: one more term in the diff.eq. for the shadow price.
- Wednesday: Remaining topics:
- Leftovers from tomorrow.
- Phase diagrams! Although infinite horizons is not curriculum per se, phase diagrams can help us find out what happens in finite horizon - and in "very long finite horizon".
- What happens if final time is subject to choice. A warning.
Last year's handwritten notes: For the first control theory lecture, and and second and the third.
Published Mar. 4, 2019 8:42 PM
- Last modified Mar. 4, 2019 8:42 PM