Infinite-Horizon Optimal Control with Applications in Growth Theory (Lecture Notes)

These lecture notes provide an introduction to the optimal control theory with a focus on recent achievements in the area of infinite-horizon optimal control. In particular, they present the recently developed "finite-horizon approximation" approach to deriving a modified maximum principle targeted specifically to infinite-horizon optimal control problems. The neoclassical optimal economic growth model with the logarithmic instantaneous utility function is considered as an illustrating example