Dynamic Programming: An Introduction by Example

Abstract

The author introduces some basic dynamic programming techniques, using examples, with the help of the computer algebra system Maple. The emphasis is on building confidence and intuition for the solution of dynamic problems in economics. To integrate the material better, the same examples are used to introduce different techniques. One covers the optimal extraction of a natural resource, another uses consumer utility maximization, and the final example solves a simple real business cycle model. Every example is accompanied by Maple computer code to allow for replication.

Keywords:

• dynamic programming
• learning by example
• Maple JEL codes: C610
• A230