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Lagrangian Part 3 | Finite Dynamic Optimization:
In this video I talk about Dynamic Optimization using a Lagrangian for Finite time horizon problems. I talk intuitively about what each part of the Lagrangian is, and then I walk through an example unrelated to economics.
Timestamps:
0:00 - Intro
0:53 - Review of Present Value Time Discounting
1:59 - Review the Parts of a Lagrangian
3:38 - Dynamic Optimization Example: Exercise
7:10 - Writing the Lagrangian
9:13 - Condensing using Summation
10:32 - Taking & Interpreting First Order Conditions