Applications of Dynamic Optimization
摘要
Building on the theoretical foundations of dynamic optimization in discrete and in continuous time discussed in the previous chapter, we now present several applications of dynamic optimization. The topics that we cover include a detailed description of the workhorse models of modern macroeconomics (the Ramsey–Cass–Koopmans model and the Diamond model of overlapping generations), optimal renewable and nonrenewable resource management, and modeling the sustainability of consumption in the presence of pollution.