Published June 2010
| Version v1
Journal article
Two Characterizations of Optimality in Dynamic Programming
Creators
- 1. Columbia University, Department of Mathematics (United States)
- 2. University of Minnesota, School of Statistics (United States)
Description
It holds in great generality that a plan is optimal for a dynamic programming problem, if and only if it is 'thrifty' and 'equalizing.' An alternative characterization of an optimal plan, that applies in many economic models, is that the plan must satisfy an appropriate Euler equation and a transversality condition. Here we explore the connections between these two characterizations.
Additional details
Identifiers
Publishing Information
- Journal Title
- Applied Mathematics and Optimization
- Journal Volume
- 61
- Journal Issue
- 3
- Journal Page Range
- p. 421-434
- ISSN
- 0095-4616
INIS
- Country of Publication
- United States
- Country of Input or Organization
- International Atomic Energy Agency (IAEA)
- INIS RN
- 42072401
- Subject category
- S97: MATHEMATICAL METHODS AND COMPUTING;
- Descriptors DEI
- DYNAMIC PROGRAMMING; ECONOMIC ANALYSIS; EQUATIONS; MATHEMATICAL MODELS; OPTIMIZATION
- Descriptors DEC
- CALCULATION METHODS; ECONOMICS
Optional Information
- Copyright
- Copyright (c) 2010 Springer Science+Business Media, LLC