A typical example
One should be careful as
ZT
0exp( 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 more di¢ cult. It is an optimal control problem with path restrictions.
greg delong
(Greg DeLong)
#1
One should be careful as
ZT
0exp( 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 more di¢ cult. It is an optimal control problem with path restrictions.