DYNAMIC RESOURCE AND AGRICULTURAL ECONOMICS USING STOCHASTIC OPTIMAL CONTROL: AN INTRODUCTION

This paper analyzes the optimwn control of stochastic processes. An investment model is used to introduce stochastic differential equations, interpret Ito's lemma, and derive Bellman's equation. An economic model of soil conservation where erosion is a stochastic process is then used to derive and interpret the stochastic maximum principle.


Issue Date:
Aug 05 1990
Publication Type:
Conference Paper/ Presentation
DOI and Other Identifiers:
Record Identifier:
https://ageconsearch.umn.edu/record/270727
Language:
English
Total Pages:
24




 Record created 2018-04-05, last modified 2020-10-28

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