Abstract
In many situations in Economics, one would like to analyse the optimal timing of switching between alternative and consecutive regimes. A natural framework for such an analysis seems to be one of multi-stage optimal control problems, where the switching instants between regimes are endogenously determined. The existing literature considers only the case of two-stage optimal control problems with finite horizon. However, in many cases, it seems more appropriate to consider a problem with an infinite horizon. By deriving the appropriate necessary conditions for such a problem we generalise the methodology in analysing endogenous regime switches.
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callDisclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
