An optimal control problem in economics
The first problem in the economics of natural resources is to find the rate at which to extract the resource in order to optimize its value when there are no extraction costs. It is shown that the existence of an optimal extraction path is not guaranteed by a utility function that is merely (strictl...
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| Main Authors: | , |
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| Format: | Article |
| Language: | English |
| Published: |
Wiley
1991-01-01
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| Series: | International Journal of Mathematics and Mathematical Sciences |
| Subjects: | |
| Online Access: | http://dx.doi.org/10.1155/S016117129100073X |
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| Summary: | The first problem in the economics of natural resources is to find the rate at
which to extract the resource in order to optimize its value when there are no extraction
costs. It is shown that the existence of an optimal extraction path is not guaranteed by a
utility function that is merely (strictly) concave, but that the additional requirement of
asymptotic nonlinearity will assure the existence of the desired optimum. |
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| ISSN: | 0161-1712 1687-0425 |