This lecture is the introduction to the series entitled 'Lectures in Recursive Economic Dynamics'. We lay down the agenda for the subsequent lectures, and, first of all, examine the basic characteristics of dynamic economic problems. Then we solve the elementary cake-eating problem, a variant of the seminal model by Brock and Mirman (1972), in finite and infinite cases in different approaches including the dynamic programing method of the Bellman equations.
Title page: (0:00)
Agenda for the series: (0:10)
On dynamic economics: (7:19)
The mathematical description of behavior:(15:47)
Solving the finite cake-eating problem:(24:07)
Infinite cake-eating:(39:52)
Solving the cake-eating problem in dynamic programming:(56:34)
The Bellman-equation:(76:43)
