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 |
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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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| _version_ | 1832552360286617600 |
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| author | Jannett Highfill Michael McAsey |
| author_facet | Jannett Highfill Michael McAsey |
| author_sort | Jannett Highfill |
| collection | DOAJ |
| description | 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. |
| format | Article |
| id | doaj-art-62ec3e13b5434c2bb872d37fe8c40859 |
| institution | Kabale University |
| issn | 0161-1712 1687-0425 |
| language | English |
| publishDate | 1991-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | International Journal of Mathematics and Mathematical Sciences |
| spelling | doaj-art-62ec3e13b5434c2bb872d37fe8c408592025-02-03T05:58:49ZengWileyInternational Journal of Mathematics and Mathematical Sciences0161-17121687-04251991-01-0114353754410.1155/S016117129100073XAn optimal control problem in economicsJannett Highfill0Michael McAsey1Department of Economics, Bradley University, Peoria 61625, Illinois, USADepartment of Mathematics, Bradley University, Peoria 61625, Illinois, USAThe 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.http://dx.doi.org/10.1155/S016117129100073Xexistenceoptimal controlnonrenewable resource. |
| spellingShingle | Jannett Highfill Michael McAsey An optimal control problem in economics International Journal of Mathematics and Mathematical Sciences existence optimal control nonrenewable resource. |
| title | An optimal control problem in economics |
| title_full | An optimal control problem in economics |
| title_fullStr | An optimal control problem in economics |
| title_full_unstemmed | An optimal control problem in economics |
| title_short | An optimal control problem in economics |
| title_sort | optimal control problem in economics |
| topic | existence optimal control nonrenewable resource. |
| url | http://dx.doi.org/10.1155/S016117129100073X |
| work_keys_str_mv | AT jannetthighfill anoptimalcontrolproblemineconomics AT michaelmcasey anoptimalcontrolproblemineconomics AT jannetthighfill optimalcontrolproblemineconomics AT michaelmcasey optimalcontrolproblemineconomics |