Genesis of indifference thresholds and infinitely many indifference points in discrete time infinite horizon optimisation problems

S. Moghayer () and Florian Wagener
Additional contact information
S. Moghayer: University of Amsterdam

No 09-14, CeNDEF Working Papers from Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance

Abstract: This article investigates the discrete time indifference-attractor bifurcation of infinite horizon continous-time optimal control problems with a single state variable. We show that these bifurcations are linked to a heteroclinic bifurcation scenario of the state-costate equations, and we analyse the consequences for the optimal solutions. In particular, we can characterise the bifurcation value at which indifference thresholds appear by a geometric condition, and we find that for certain parameter values, there are countably infinitely many indifference points. We apply our results to a modified version of the shallow lake pollution management problem.

Date: 2009
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
http://cendef.uva.nl/binaries/content/assets/subsi ... te.pdf?1363343328214 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ams:ndfwpp:09-14

Access Statistics for this paper

More papers in CeNDEF Working Papers from Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance Dept. of Economics and Econometrics, Universiteit van Amsterdam, Roetersstraat 11, NL - 1018 WB Amsterdam, The Netherlands. Contact information at EDIRC.
Bibliographic data for series maintained by Cees C.G. Diks ().