Optimal Control of Investments in Old and New Capital Under Improving Technology
Natali Hritonenko (),
Nobuyuki Kato () and
Yuri Yatsenko ()
Additional contact information
Natali Hritonenko: Prairie View A&M University
Nobuyuki Kato: Kanazawa University
Journal of Optimization Theory and Applications, 2017, vol. 172, issue 1, No 15, 247-266
Abstract An optimal control problem for nonlinear integral equations of special kind is analyzed. It considers a firm’s investment into age-dependent capital under improving technology and limited substitutability among capital of different ages. We prove the existence of solutions and analyze their structure. It is shown that the initially bang-bang optimal investment switches to an interior one and eventually converges to a steady-state trajectory that represents balanced economic growth. The obtained analytic outcomes contribute to better understanding of investment policies under technological change.
Keywords: Nonlinear optimal control; Existence theorem; Technological change; Constant elasticity of substitution; Bang-bang solution; Balanced growth; 91B62; 49J22; 49K22; 45M05; 37N40 (search for similar items in EconPapers)
References: View references in EconPapers View complete reference list from CitEc
Citations: Track citations by RSS feed
Downloads: (external link)
http://link.springer.com/10.1007/s10957-016-1022-y Abstract (text/html)
Access to the full text of the articles in this series is restricted.
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:spr:joptap:v:172:y:2017:i:1:d:10.1007_s10957-016-1022-y
Ordering information: This journal article can be ordered from
http://www.springer. ... cs/journal/10957/PS2
Access Statistics for this article
Journal of Optimization Theory and Applications is currently edited by Franco Giannessi and David G. Hull
More articles in Journal of Optimization Theory and Applications from Springer
Bibliographic data for series maintained by Sonal Shukla ().