Optimal timing of regime switching in optimal growth models: A Sobolev space approach
Erol Dogan (),
Cuong Le Van () and
Çağrı Sağlam ()
Additional contact information Erol Dogan: Department of Economics, Bilkent University.
Cuong Le Van: PSE, Université Paris 1, CNRS CES, 106-112 boulevard de l'Hôpital 75647 Paris cedex 13
This paper annalyses the optimal timing of switching between alternative and consecutive regimes on optimal growth models. We derive the appropriate necessary conditions for such problems by means of the standard techniques from calculus of variations and some basic properties of Sobolev spaces.