Mathematics for Economists

Optimal control, Bolza problem

x( 1 ) = x(^1 )

2

+Ce, 1 =x( 0 )=x(^1 )

2

e+C,

x( 1 )

2

= Ce,C= 1 x(^1 )

2

e,C= 1 Ce^2 ,C=^1

1 +e^2

x( (^1) ) =^2 e
1 +e^2
x(t)= e
2
1 +e^2
et+^1
1 +e^2
et.