Elements of Dynamic OptimizationDesigned to be used with Chiang's "Fundamental Methods of Mathematical Economics", or independently at advanced undergraduate or graduate level, this text presents an in-depth exploration of dynamic optimization in economics. |
Contents
1 | 4 |
The Calculus of Variations | 25 |
Transversality Conditions | 59 |
Copyright | |
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Common terms and phrases
apply arbitrary constants assumed boundary conditions c₁ c₂ calculus of variations CALIFORNIA/SANTA CRUZ capital concave control path control variable convergence costate variable counterexamples CRUZ The University current-value Hamiltonian curve definite denote derivative differential equation discount factor dt subject dynamic optimization equation of motion Euler equation Euler-Lagrange equation example expression F function firm first-order fixed terminal given Hamiltonian improper integral inequality infinite-horizon initial point integral constraint integrand function investment isoperimetric problem Lagrange multiplier Lagrangian Lagrangian integrand linear Mangasarian Maximize maximum principle negative nonnegativity objective functional optimal control problem optimal control theory optimal path phase diagram pollution positive production function profit Ramsey model restriction result satisfied shadow price solve specific stable branch streamlines substitution term terminal point theorem tion transversality condition truncated vertical terminal u₁ UNIVERSITY OF CALIFORNIA/SANTA vertical terminal line y₁ zero ән ди