The following set of basic concepts from mathematics and statistics are very important for this course:
A random shock
Stochastic processes: mean, variance, standard deviation, auto-correlation, and cross-correlation
Matrices and vectors
Eigenvalues and eigenvectors
Linear difference equation
The stability conditions of a dynamic process (using difference equations)
Linearization of a non-linear process (Taylor approximation)
The Pluto notebooks below will be used to illustrate many of the concepts above.
These slides may provide some help: here
Use as much as possible the slides above in your study.
But if you feel like needing some further support from a textbook, in order to consolidate your knowledge, please read the parts of Chapters 2 and 3 of the book below that are closely associated with the slides above:
Edward R. Scheinerman (1996). Invitation to Dynamical Systems, Prentice-Hall Solutions to end-chapters can be found here
Notice that the two chapters cover continuous and discrete-time, but in this course, we use only discrete-time.
The entire book can also be downloaded for free from here, where you can also find solutions to the end-chapters exercises. If you download the book, please send a postcard from your town to Ed Scheinerman.