IDEAS home Printed from https://ideas.repec.org/h/spr/isochp/978-3-031-88638-6_4.html
   My bibliography  Save this book chapter

Optimization in Age-Structured Dynamic Economic Models

In: The Unaffordable Price of Static Decision-making Models

Author

Listed:
  • Michael Freiberger

    (International Institute for Applied Systems Analysis (IIASA)
    Wittgenstein Center (IIASA, OeAW/VID, University of Vienna))

  • Michael Kuhn

    (International Institute for Applied Systems Analysis (IIASA)
    Wittgenstein Center (IIASA, OeAW/VID, University of Vienna)
    Vienna Institute of Demography)

  • Alexia Prskawetz

    (Institute of Statistics and Mathematical Methods in Economics, Vienna University of Technology
    Austrian Academy of Sciences
    International Institute for Applied Systems Analysis (IIASA)
    Wittgenstein Center (IIASA, OeAW/VID, University of Vienna))

  • Miguel Sanchez-Romero

    (Institute of Statistics and Mathematical Methods in Economics, Vienna University of Technology
    Austrian Academy of Sciences
    International Institute for Applied Systems Analysis (IIASA)
    Wittgenstein Center (IIASA, OeAW/VID, University of Vienna))

  • Stefan Wrzaczek

    (International Institute for Applied Systems Analysis (IIASA)
    Wittgenstein Center (IIASA, OeAW/VID, University of Vienna))

Abstract

Age-structured optimal control models experience increasing applications in various research fields including, e.g., demography, economics, operations research, epidemiology, and environmental economics. In this paper we present the mathematical theory and potential applications of age-structured optimal control models. We first state the general form of the problem and present the necessary optimality conditions. To illustrate the mathematical theory we introduce a toy model on air pollution, where consumption induces pollution which in turn negatively affects utility, fertility, and mortality. We solve the model analytically and present numerical simulations. The potential of an age-structure approach to solve non-standard optimal control models is demonstrated by considering optimal control models with random switches or time-lags and delays.

Suggested Citation

  • Michael Freiberger & Michael Kuhn & Alexia Prskawetz & Miguel Sanchez-Romero & Stefan Wrzaczek, 2025. "Optimization in Age-Structured Dynamic Economic Models," International Series in Operations Research & Management Science, in: Fouad El Ouardighi & Gustav Feichtinger (ed.), The Unaffordable Price of Static Decision-making Models, chapter 0, pages 35-62, Springer.
    • Handle: RePEc:spr:isochp:978-3-031-88638-6_4
    DOI: 10.1007/978-3-031-88638-6_4
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a
    for a similarly titled item that would be available.

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:spr:isochp:978-3-031-88638-6_4. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.