On the Solution of State Constrained Optimal Control Problems in Economics
Institution: | Högskolan i Halmstad |
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Department: | |
Year: | 2008 |
Keywords: | Optimal Control; Resource Allocation Model; Financial Mathematics; Finansiell matematik; Physics, Chemistry, Mathematics; fysik/kemi/matematik |
Record ID: | 1356185 |
Full text PDF: | http://urn.kb.se/resolve?urn=urn:nbn:se:hh:diva-2195 |
In this work we examine a state constrained resource allocation model a with finite time horizon. Therefore, we use the necessary conditions of the Pontrjagin's Maximum Principle to find candidates for the solution and verify them later on using the sufficient conditions given by the duality concept of Klötzler. Moreover, we proof that the solution of the corresponding infinite horizon model does not fulfill the overtaking criterion of Weizsäcker.