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Zeno points in optimal control models with endogenous regime switching

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  • Seidl, Andrea

Abstract

The present paper considers a type of multi-stage problem where a decision maker can optimally decide to switch between two alternating stages (regimes). In such a problem, either one of the two stages dominates in the long run or it is optimal to infinitely switch between stages. A point where such a phenomenon occurs with optimal switching time zero is called Zeno point.

Suggested Citation

  • Seidl, Andrea, 2019. "Zeno points in optimal control models with endogenous regime switching," Journal of Economic Dynamics and Control, Elsevier, vol. 100(C), pages 353-368.
  • Handle: RePEc:eee:dyncon:v:100:y:2019:i:c:p:353-368
    DOI: 10.1016/j.jedc.2018.09.010
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    References listed on IDEAS

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    More about this item

    Keywords

    Multi-stage modeling; Zeno point; Endogenous regime switching;

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes

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