On the Optimal Control of Some Parabolic Partial Differential Equations Arising in Economics

Raouf Boucekkine (), Carmen Camacho and Giorgio Fabbri

No 1334, AMSE Working Papers from Aix-Marseille School of Economics, France

Abstract: We review an emerging application field to parabolic partial differential equations (PDEs), that's economic growth theory. After a short presentation of concrete applications, we highlight the peculiarities of optimal control problems of parabolic PDEs with infinite time horizons. In particular, the heuristic application of the maximum principle to the latter leads to single out a serious ill-posedness problem, which is, in our view, a barrier to the use of parabolic PDEs in economic growth studies as the latter are interested in long-run asymptotic solutions, thus requiring the solution to infinite time horizon optimal control problems. Adapted dynamic programming methods are used to dig deeper into the identified ill-posedness issue.

Keywords: Parabolic partial differential equations; optimal control; infinite dimensional problems; infinite time horizons; ill-posedness; dynamic programming (search for similar items in EconPapers)
Pages: 26 pages
Date: 2013-06-05, Revised 2013-06-05
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Citations: View citations in EconPapers (23)

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Related works:
Working Paper: On the optimal control of some parabolic partial differential equations arising in economics (2013)
Working Paper: On the optimal control of some parabolic partial differential equations arising in economics (2013)
Working Paper: On the Optimal Control of Some Parabolic Partial Differential Equations Arising in Economics (2013)
Working Paper: On the optimal control of some parabolic partial differential equations arising in economics (2013)
Working Paper: On the Optimal Control of Some Parabolic Partial Differential Equations Arising in Economics (2013)
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Persistent link: https://EconPapers.repec.org/RePEc:aim:wpaimx:1334

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