Mathematics for Economists

A typical example

ZT

0

exp(rt)U(C(t))dt!max

K^0 (t)=F(K(t))C(t)bK(t)

K( (^0) )=K 0 ,K(T) 0 ,C(t) 0
is an optimal control problem. First two lines are always there the third
line, the boundary conditions, has many variations. The boundary
conditions are very important!