
Accession Number : AD0439234
Title : DYNAMIC PROGRAMMING OF ECONOMIC GROWTH,
Corporate Author : CALIFORNIA UNIV BERKELEY CENTER FOR RESEARCH IN MANAGEMENT SCIENCE
Personal Author(s) : Radner,Roy
Report Date : FEB 1964
Pagination or Media Count : 54
Abstract : A class of problems of optimal economic growth is formulated in terms of the functional equation approach of dynamic programming (Bellman, 1957). A study is made of the continuity and concavity properties of the state valuation function, i.e., the function indicating the maximum total discounted welfare (utility) that can be achieved starting from a given initial state of the economy. Under suitable conditions this function is characterized by a certain functional equation. Both the cases of a finite and an infinite planning horizon are treated, the latter case being discussed under the assumption of constant technology and tastes. Here iteration of a certain transformation associated with the functional equation is shown to provide convergence to the state valuation function. Exact solutions are given for the case of linearlogrithmic production and welfare functions. (Author)
Descriptors : (*ECONOMICS, DYNAMIC PROGRAMMING), GROWTH(PHYSIOLOGY), MATHEMATICAL MODELS, THEORY, EQUATIONS, THEOREMS, MATHEMATICAL ANALYSIS
Distribution Statement : APPROVED FOR PUBLIC RELEASE