Advertisement

Linear Optimal Control

Chapter
  • 74 Downloads

Abstract

In certain problems, control variables enter the Hamiltonian linearly, either via the objective function or the dynamic system or both. This type of problem is called Linear Optimal Control. For example, in the Optimal growth model discussed earlier (see 5.6.2), if the utility funtion is u(c)= c, then the maximization of \(\int\limits_0^T {c{e^{ - rt}}dt}\) subject to \(\mathop k\limits^ \bullet = f(k) - \lambda k - c\) leads to the Hamiltonian \(H \equiv ({e^{ - rt}} - p)c + p[f(k) - \lambda k\) which is linear in the control variable c.

Keywords

Monetary Policy Optimal Policy Transversality Condition Switching Function Marginal Revenue 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

Copyright information

© Springer-Verlag Berlin Heidelberg 1984

Authors and Affiliations

  1. 1.Department of EconomicsThe University of CalgaryN. W. CalgaryCanada

Personalised recommendations