A Model for the Optimal Investment Strategy in the Context of Pandemic Regional Lockdown

Antoine Tonnoir, Ioana Ciotir, Adrian-Liviu Scutariu and Octavian Dospinescu
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Antoine Tonnoir: Normandie University, INSA de Rouen Normandie, LMI (EA 3226-FR CNRS 3335), 685 Avenue de l’Université, CEDEX, 76801 St Etienne du Rouvray, France
Ioana Ciotir: Normandie University, INSA de Rouen Normandie, LMI (EA 3226-FR CNRS 3335), 685 Avenue de l’Université, CEDEX, 76801 St Etienne du Rouvray, France
Adrian-Liviu Scutariu: Faculty of Economics and Public Administration, “Ştefan cel Mare” University of Suceava, Str. Universităţii nr. 13, 720229 Suceava, Romania
Octavian Dospinescu: Faculty of Economics and Business Administration, Alexandru Ioan Cuza University of Iasi, Av. Carol I, nr. 22, 700505 Iasi, Romania

Mathematics, 2021, vol. 9, issue 9, 1-12

Abstract: The Covid-19 pandemic has generated major changes in society, most of them having a negative impact on the quality of life and income obtained by the population and businesses. The negative consequences have been highlighted in the decrease of the GPD level for regions, countries and even continents. Returning to pre-pandemic levels is a considerable effort for both economic and political decision-makers. This article deals with the construction of a mathematical model for economic aspects in the context of variable productivity in time. Through this mathematical model, we propose to maximize revenues in pandemic conditions, in order to limit the economic consequences of the lockdown. One advantage of the proposed model consists in the fact that it is based on units that can be regions, economic branches, economic units or fields of investment. Another strength of the model is determined by the fact that it offers the possibility to choose between two different investment strategies, based on the specific options of the decision makers: the consistent increase of the state revenues or the amelioration of the disparity phenomenon. Furthermore, our model extends previous approaches from the literature by adding some generalization options and the proposed model can be applied in lockdown cases and seasonal situations.

Keywords: optimal control; income maximization; optimal investment strategy; disparity amelioration (search for similar items in EconPapers)
JEL-codes: C (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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