Assessment of the Impact of Aggregated Economic Factors on Optimal Consumption in Models of Economic Growth
Abstract
The problem of consumption-optimal economic growth is considered. In the model there are three factors of production: capital, labor and useful work, that interact in the production of homogenous output. At any instant of time a fraction of this homogeneous output can be allocated to investment in accumulation of capital and useful work. The gross domestic product (GDP) of a country is presented by the linear-exponential (LINEX) production function.
The general goals of the research can be formulated as follows:
-analysis of properties of the LINEX production function and identification of parameters under restrictions on elasticity coefficients;
-analysis of the Hamiltonian system of differential equations for the Pontryagin maximum principle in the optimal control problem;
-elaboration of an algorithm for constructing synthetic trajectories of optimal economic growth;
-development of software for numerical simulation and sensitivity analysis;
-comparison of real and synthetic trajectories of economic growth, and simulation of future scenarios.
The general goals of the research can be formulated as follows:
-analysis of properties of the LINEX production function and identification of parameters under restrictions on elasticity coefficients;
-analysis of the Hamiltonian system of differential equations for the Pontryagin maximum principle in the optimal control problem;
-elaboration of an algorithm for constructing synthetic trajectories of optimal economic growth;
-development of software for numerical simulation and sensitivity analysis;
-comparison of real and synthetic trajectories of economic growth, and simulation of future scenarios.