SUFFICIENT CONDITIONS FOR OPTIMALITY IN INFINITE HORIZON LINEAR ECONOMIC MODELS.

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)

Document Details

Document Type
Technical Report
Publication Date
Mar 01, 1969
Accession Number
AD0701913

Entities

People

  • David S. P. Hopkins

Organizations

  • Stanford University

Tags

DTIC Thesaurus Topics

  • Calculators
  • Computations
  • Contracts
  • Economic Analysis
  • Economic Models
  • Economics
  • Linear Programming
  • Literature
  • Mathematics
  • Office Equipment And Supplies
  • Social Sciences

Fields of Study

  • Economics
  • Mathematics

Readers

  • Calculus or Mathematical Analysis
  • Operations Research
  • Software Verification and Validation.