On the optimal control of some parabolic partial differential equations arising in economics

Raouf Boucekkine (), Carmen Camacho and Giorgio Fabbri

No 13-10, Documents de recherche from Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne

Abstract: We review an emerging application field to parabolic partial differential equa- tions (PDEs), that’s economic growth theory. After a short presentation of con- crete applications, we highlight the peculiarities of optimal control problems of parabolic PDEs with infinite time horizons. In particular, the heuristic appli- cation 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 solu- tions, 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 di- mensional problems; infinite time horizons; ill-posedness; dynamic programming (search for similar items in EconPapers)
Pages: 26 pages
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (20)

Downloads: (external link)
https://www.univ-evry.fr/fileadmin/mediatheque/uev ... es/Epee/wp/13-10.pdf (application/pdf)

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)
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:eve:wpaper:13-10

Access Statistics for this paper

More papers in Documents de recherche from Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne Contact information at EDIRC.
Bibliographic data for series maintained by Samuel Nosel ().