In addition we discuss the traditional Kuhn-Tucker optimality conditions. Gill Murray and Wright Chapter 3, pp. The primary focus of this course is in using mathematical methods to solve economic problems. Given this focus the study of algorithms is very important. Analystical solutions of the first order conditions in applied work are fairly rare.
Most applications rely on iterative procedures to solve the problem at hand.
This section discusses a number of these iterative procedures. The iterative nature of applied mathematical programming necessitates the use of computers in the process. Finally, we will examine the use of specialized code such as GAMS and Minos. The first challenge in studying dynamic systems is to understand its mathematical tools. Tu Chapters 2 and 3, and 5 and 6 pp.