Prof. Gerhard Sorger, University of Vienna, Austria

The lecture will proceed along the following lines:

1. The reduced-form optimal growth model: In this part the model will be formulated, examples of its applications will be given, and it will be shown how it can be solved by means of dynamic programming methods.

2. The inverse optimal growth model: In this part the rationalizability problem is explained, two approaches how it can be solved are presented, and these approaches by means of examples are illustrated.

3. Discount factor restrictions: In this part some results are presented that demonstrate that a high rate of time-preference is necessary for the emergence of complicated dynamics in the reduced-form optimal growth problem.