Optimum allocation of investments in a two — Region economy
In this paper an economy has been modeled with a two-sector. Macro Economic model where one sector, disaggregated in two regions, produces goods which are destined to be either invested or consumed, while the other sector, considered globally for the entire nation, produces goods which can only be used as social consumptions. The policy variable is the allocation of investments between sectors and regions.
A criterion of social welfare has been defined and the resulting optimal control problem is risolved.
KeywordsOptimal Control Problem Optimal Policy Capital Stock Optimal Trajectory Social Consumption
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