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Resource allocation problem in a two-sector economic model of special form

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Abstract

In the present paper, we study the resource allocation problem for a two-sector economic model of special form, which is of interest in applications. The optimization problem is considered on a given finite time interval. We show that, under certain conditions on the model parameters, the optimal solution contains a singular mode. We construct optimal solutions in closed form. The theoretical basis for the obtained results is provided by necessary optimality conditions (the Pontryagin maximum principle) and sufficient optimality conditions in terms of constructions of the Pontryagin maximum principle.

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References

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Authors and Affiliations

  1. Moscow State University, Moscow, Russia

    Yu. N. Kiselev, S. N. Avvakumov & M. V. Orlov

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  1. Yu. N. Kiselev
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  2. S. N. Avvakumov
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  3. M. V. Orlov
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Original Russian Text © Yu.N. Kiselev, S.N. Avvakumov, M.V. Orlov, 2009, published in Differentsial’nye Uravneniya, 2009, Vol. 45, No. 12, pp. 1756–1774.

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Kiselev, Y.N., Avvakumov, S.N. & Orlov, M.V. Resource allocation problem in a two-sector economic model of special form. Diff Equat 45, 1791–1810 (2009). https://doi.org/10.1134/S0012266109120106

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  • DOI: https://doi.org/10.1134/S0012266109120106

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