1. Introduction 2. First Order Difference Equations 2.1 Introduction 2.2 Solution Functions 2.2.1 Homogenous Equations 2.2.

2 Non-Homogenous Equations 2.3 Phase Diagrams 2.3.1 Diagrammatic Representation of Linear, First Order Difference Equation 2.4 Examples of FODE Models 2.4.1 The Keynsian Multiplier 2.4.

2 A Simple Phillips Stabilization Model 2.4.3 The Cobweb Model 3. Second Order Difference Equations 3.1 Introduction 3.2 Characteristic Roots 3.2.1 Real Roots 3.

2.2 Complex Roots 3.2.3 Properties of the Characteristic Equation 3.2.4 Completing the Solution 3.3 Examples of SODE Models 3.3.

1 The Multiplier-Accelerator Model 3.3.2 Phillips Proportional Stabilization Policy Model 3.3.3. A Cobweb Model with Firm Entry 4. Higher Order and Systems of Difference Equations 4.1 Higher Order Difference Equations 4.

1.1 Economic Example 4.2 Systems of Difference Equations 4.2.1 Matrix Techniques 4.2.2 Eigenvalues and Eigenvectors 4.3 Examples of Systems of Difference Equations 4.

3.1 Cobweb Model with Firm Entry 4.3.2 Cournot Duopoly Model 4.3.3 A Demography Model 5. Intertemporal Optimization 5.1 Introduction 5.

2 Dynamic Programming 5.2.1 Finite Horizon Problems 5.2.2 Infinite Horizon Problems 5.2.3 Uncertainty 5.3 Lagrange Multiplier Approach 5.

3.1 Finite Horizon 5.3.2 Infinite Horizon 5.4 Examples 5.4.1 Model of Investment in Health 5.4.

2 Stochastic Optimization 6. Nonlinear Difference Equations 6.1 Introduction 6.1.1 Phase Diagrams 6.2 Linearizing Nonlinear Difference Equations 6.2.1 Nonlinear First Order Difference Equation 6.

3 A Basic Neoclassical Growth Model 6.4 Chaos in Economics 7. Empirical Analysis of Econmic Dynamics 7.1 Introduction 7.2 Basic Empirical Dynamic Models 7.2.1 The Partial Adjustment Model 7.2.

2 The Error Correction Model 7.3 Time Series Analysis 7.3.1 Unit Roots 7.3.2 Cointegration Analysis 7.4 Examples of Empirical Analysis 7.4.

1 Large Scale Macro Modelling 7.4.2 Micoreconomic Examples 7.5 Conclusion.