Accession Number : AD0701913

Title :   SUFFICIENT CONDITIONS FOR OPTIMALITY IN INFINITE HORIZON LINEAR ECONOMIC MODELS.

Descriptive Note : Technical rept.,

Corporate Author : STANFORD UNIV CALIF OPERATIONS RESEARCH HOUSE

Personal Author(s) : Hopkins,David S. P.

Report Date : MAR 1969

Pagination or Media Count : 153

Abstract : The report contains some results concerning the numerical computation of optimal solutions to infinite-horizon dynamic linear programs. Models of this type arise in several contexts in the economics literature. Two sets of sufficient conditions for optimality are formulated. These refer to a general dynamic structure in which the constraints for any period, t, do not include any variable whose time subscript is greater than t. The sufficiency theorems proved in Chapter 3 ensure that a given solution which meets one of these sets of conditions is infinite-horizon optimal. The remainder of the work is concerned with demonstrating how one might construct an infinite-horizon optimal solution in practice. For this purpose, two economic applications are considered - a model for equipment replacement and capacity expansion, and a development planning model. (Author)

Descriptors :   (*ECONOMICS, MATHEMATICAL MODELS), (*LINEAR PROGRAMMING, NUMERICAL ANALYSIS), REPLACEMENT THEORY, MANAGEMENT PLANNING AND CONTROL, MATRICES(MATHEMATICS), THESES

Subject Categories : Administration and Management
      Economics and Cost Analysis
      Operations Research

Distribution Statement : APPROVED FOR PUBLIC RELEASE