Tentative reading list
[HM] Holmstrom, B and P. Milgrom: Aggregation and linearity in the provision of intertemporal incentives, 1987. Econometrica, 55. Pp. 303-328. Download from JSTOR.
[KK] Klette, T.J. and S. Kortum: Innovation Firms and Aggregate Innovation, 2002. CEPR Discussion Paper 3248. Download.
[P] Pissarides, C.A.: Equilibrium Unemployment Theory, 2000. The MIT Press. Chapters 1-2.
[SC] Schweder, T.: Examples of stochastic modeling and analysis in economics, Mimeo. Download.
[SE] Seierstad, A.: The control of diffusions, Mimeo.
[TK] Taylor, H.M. and S. Karlin: An introduction to stochastic modeling, (3rd edition) 1998. Academic Press. Chapters 1-6 and 8.