Dynamic optimization with a nonconvex technology: Determination of critical stocks
type: Item
instance of: scholarly article
title: Dynamic optimization with a nonconvex technology: Determination of critical stocks
zbMATH Open document ID: 0585.90022
DOI: 10.1016/0025-5564(85)90037-9
author: T. C. A. Anant
author: Sunil K. Sharma
published in: Mathematical Biosciences
publication date: 1985-01-01T00:00:00Z
review text: It is well-known that, in the presence of a nonconvex production technology, economically optimal policies for management of biologically renewable resources depend on the position of the initial resource stock relative to a certain critical stock. If the initial stock is less than this critical volume, an extinction policy is optimal, and if the initial stock is greater than the critical volume, a regeneration policy is optimal. The present paper considers the problem of determining the volume of the critical stock in a continuous time framework with irreversible investment. Its sensitivity to policy parameters such as the interest rate is also investigated. A simple example illustrates the results.
Mathematics Subject Classification ID: 91B76
Mathematics Subject Classification ID: 91B62
zbMATH DE Number: 3939054
zbMATH Keywords: nonconvex production technology
zbMATH Keywords: renewable resources
zbMATH Keywords: critical stock
zbMATH Keywords: continuous time framework
zbMATH Keywords: irreversible investment
zbMATH Keywords: sensitivity to policy parameters
MaRDI profile type: Publication
full work available at URL: 0025-5564(85)90037-9
OpenAlex ID: W2044593484
cites work: Economically optimal policies for the utilization of biologically renewable resources
cites work: Q4139908
cites work: Q3854875
cites work: Existence and Characterization of Optimal Growth Paths Including Models with Non-Convexities in Utilities and Technologies
cites work: A complete characterization of optimal growth paths in an aggregated model with a non-concave production function
cites work: Infinite Horizon Programs
cites work: Dynamic Optimization with a Non-Convex Technology: The Case of a Linear Objective Function
cites work: Intertemporal allocation with a non-convex technology: The aggregative framework
cites work: Most Rapid Approach Paths in Accumulation Problems
description: scientific article; zbMATH DE number 3939054