Abstract
The control problems introduced in chapter 2 assume that a continuous flow of information is available to help us determine the best actions. With the assumption of continuity of the state and information vectors, we could use tools from the calculus and differential equations to identify the optimal solution. However, all economic data is collected at periodic intervals, and applications of the continuous control formulation in economics has been restricted almost exclusively to pure economic theory.
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© 1997 Springer Science+Business Media New York
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Sengupta, J.K., Fanchon, P. (1997). Discrete time models. In: Control Theory Methods in Economics. Springer, Boston, MA. https://doi.org/10.1007/978-1-4615-6285-6_3
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DOI: https://doi.org/10.1007/978-1-4615-6285-6_3
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