Abstract
The theory of optimal economic growth is a branch of economic theory that makes direct and sophisticated use of the theory of optimal control. As such, the models of optimal economic growth that have been devised and reported in the economics literature are relatively easy for a person who has mastered the material of Chapters 3 and 4 of this book to comprehend. Among other things, this chapter shows how aspatial optimal economic growth theory may be extended to study optimal growth of interdependent regions in a national economy. Moreover, working through the analyses presented in this chapter provides a means of assessing and improving one’s mastery of the key mathematical concepts from the theory of optimal control that were introduced in previous chapters, especially the analysis and interpretation of optimality conditions and singular controls.
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Friesz, T.L. (2010). Optimal Economic Growth. In: Dynamic Optimization and Differential Games. International Series in Operations Research & Management Science, vol 135. Springer, Boston, MA. https://doi.org/10.1007/978-0-387-72778-3_7
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DOI: https://doi.org/10.1007/978-0-387-72778-3_7
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