Mathematics for Economists

Optimal control, Bolza problem

H=u^2 +p(x+u),

p=H^0

x=p,

p=Cexp(t)

p( 1 )= 2 x( 1 )=Ce,

C= 2 e
x( 1 ),p= 2 x( 1 )exp(t+ 1 ),