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The Reproductive Value in Distributed Optimal Control Models

Listed author(s):
  • Stefan Wrzaczek
  • Michael Kuhn
  • Alexia Prskawetz
  • Gustav Feichtinger

We show that in a large class of distributed optimal control models (DOCM), where population is described by a McKendrick type equation with an endogenous number of newborns, the reproductive value of Fisher shows up as part of the shadow price of the population. Depending on the objective function, the reproductive value may be negative. Moreover, we show results of the reproductive value for changing vital rates. To motivate and demonstrate the general framework, we provide examples in health economics, epidemiology, and population biology.

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Paper provided by Vienna Institute of Demography (VID) of the Austrian Academy of Sciences in Vienna in its series VID Working Papers with number 0906.

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Length: 20 pages
Date of creation: Jun 2009
Handle: RePEc:vid:wpaper:0904
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