[Back]


Publications in Scientific Journals:

S. Aseev, V.M. Veliov:
"Another View of the Maximum Principle for Infinite-Horizon Optimal Control Problems in Economics";
Uspekhi Matematicheskikh Nauk, 74 (2019), 6; 3 - 54.



English abstract:
The authors present their recently developed complete version of the Pontryagin maximum principle for a class of infinite-horizon optimal control problems arising in economics. The main distinguishing feature of the result is that the adjoint variable is explicitly specified by a formula analogous to the Cauchy formula for solutions of linear differential systems. In certain situations this formula implies the `standard´ transversality conditions at infinity. Moreover, it can serve as an alternative to them. Examples demonstrate the advantages of the proposed version of the maximum principle. In particular, its applications are considered to Halkin's example, to Ramsey's optimal economic growth model, and to a basic model for optimal extraction of a non-renewable resource. Also presented is an economic interpretation of the characterization obtained for the adjoint variable.

Keywords:
optimal control, Pontryagin maximum principle, adjoint variables, transversality conditions, Ramsey model, optimal extraction of a non-renewable resource.


"Official" electronic version of the publication (accessed through its Digital Object Identifier - DOI)
http://dx.doi.org/10.4213/rm9915


Created from the Publication Database of the Vienna University of Technology.