Dynamic Optimization and Mathematical Economics

✍ Scribed by William A. Brock (auth.), Pan-Tai Liu (eds.)

• Publisher: Springer US
• Year: 1980
• Tongue: English
• Leaves: 272
• Series: Mathematical Concepts and Methods in Science and Engineering
• Edition: 1
• Category: Library

✦ Synopsis

As an outgrowth of the advancement in modern control theory during the past 20 years, dynamic modeling and analysis of economic systems has become an important subject in the study of economic theory. Recent developments in dynamic utility, economic planning, and profit optimiza­ tion, for example, have been greatly influenced by results in optimal control, stabilization, estimation, optimization under conflicts, multi­ criteria optimization, control of large-scale systems, etc. The great success that has been achieved so far in utilizing modern control theory in economic systems should be attributed to the effort of control theorists as well as economists. Collaboration between the two groups of researchers has proven to be most successful in many instances; nevertheless, the gap between them has existed for some time. Whereas a control theorist frequently sets up a mathematically feasible model to obtain results that permit economic interpretations, an economist is concerned more with the fidelity of the model in representing a real­ world problem, and results that are obtained (through possibly less mathematical analysis) are due largely to economic insight. The papers appearing in this volume are divided into three parts. In Part I there are five papers on the application of control theory to economic planning. Part II contains five papers on exploration, exploita­ tion, and pricing of extractive natural resources. Finally, in Part III, some recent advances in large-scale systems and decentralized control appear.

✦ Table of Contents

Front Matter....Pages i-x
Front Matter....Pages 1-3
Asset Pricing in an Economy with Production: A “Selective” Survey of Recent Work on Asset-Pricing Models....Pages 5-29
Alternative Long-Run Goals and the Theory of the Firm: Why Profit Maximization May Be a Better Assumption Than You Think....Pages 31-50
Mathematical Optimization and Economic Behavior....Pages 51-69
Performance Improvement of Uncertain Macroeconomic Systems....Pages 71-88
Stochastic Games, Oligopoly Theory, and Competitive Resource Allocation....Pages 89-100
Front Matter....Pages 101-104
Optimal Pricing, Use, and Exploration of Uncertain Natural Resource Stocks....Pages 105-116
Restricted Access to Common-Property Fishery Resources: A Game-Theoretic Analysis....Pages 117-132
Cartel and Oligopoly Pricing of Nonreplenishable Natural Resources....Pages 133-156
Optimum Extraction of an Exhaustible Resource: A Mathematical Analysis....Pages 157-168
Royalties and the Extraction Rate of an Exhaustible Resource....Pages 169-178
Front Matter....Pages 179-181
Dynamics and Control of a System Composed of a Large Number of Similar Subsystems....Pages 183-203
Hierarchical Decisionmaking under Uncertainty....Pages 205-221
A Game-Theoretic Approach to Bureaucratic Behavior....Pages 223-236
Optimal Stabilization Policies for Decentralized Macroeconomic Systems with Conflicting Targets....Pages 237-251
A Minimum Principle for Decentralized Stochastic Control Problems....Pages 253-266
Back Matter....Pages 267-269

✦ Subjects

Science, general