Optimal growth in a two-sector economy facing an expected random shock
type: Item
instance of: scholarly article
title: Optimal growth in a two-sector economy facing an expected random shock
zbMATH Open document ID: 1308.91109
DOI: 10.1134/S0081543812020022
author: S.-E. Ollus
author: S. M. Aseev
author: K. O. Besov
author: Tapio Palokangas
published in: Proceedings of the Steklov Institute of Mathematics
publication date: 2014-09-17T00:00:00Z
review text: This article deals with an optimal growth in the two-sector model with two kind of technologies (``clean'' and ``dirty''). The growth of each sector is described by the system of linear differential equations. It is assumed that in some random time the parameters of the equation change while the moment of the change has an exponential distribution. The problem of optimizing the social welfare function is stated as the optimal control problem and solved using Pontryagin's maximum principle. The authors give a characterization of the solutions for all possible cases (relations of the values of parameters). The analysis is performed by the qualitative analysis of differential equations: phase diagrams and checking vector fields generated by the system.
reviewed by: Paweł Kliber
Mathematics Subject Classification ID: 91B62
Mathematics Subject Classification ID: 91B55
Mathematics Subject Classification ID: 91B66
Mathematics Subject Classification ID: 91B76
Mathematics Subject Classification ID: 49N90
zbMATH DE Number: 6345324
zbMATH Keywords: optimal control
zbMATH Keywords: Pontryagin's maximum principle
zbMATH Keywords: growth models
zbMATH Keywords: climate change
zbMATH Keywords: technological change
MaRDI profile type: Publication
cites work: Capital accumulation and innovation as complementary factors in long-run growth
cites work: The Pontryagin maximum principle and problems of optimal economic growth
cites work: Optimal control with singular regions
cites work: Q5330830
cites work: The economic determinants of technology shocks in a real business cycle model
full work available at URL: s0081543812020022
OpenAlex ID: W2019290158
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description: scientific article; zbMATH DE number 6345324