On the dynamics of capital accumulation across space

Arbeitspapier

We solve an optimal growth model in continuous space, continuous and bounded time. The optimizer chooses the optimal trajectories of capital and consumption across space and time by maximizing an objective function with both space and time discounting. We extract the corresponding Pontryagin conditions and prove their sufficiency. We end up with a system of two parabolic differential equations with the corresponding boundary conditions. Then, we study the roles of initial capital and technology distributions over space in various scenarios.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Working Papers ; No. 376

Classification and Topics

• Classification: Wirtschaft
• Subject: Economics ; Economic geography ; Parabolic differential equations ; Optimal control ; Regionale Wachstumstheorie ; Investition ; Zeitpräferenz ; Kontrolltheorie ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Camacho, Carmen ; Zou, Benteng ; Briani, Maya
• Event: Veröffentlichung
• (who): Bielefeld University, Institute of Mathematical Economics (IMW)
• (where): Bielefeld
• (when): 2005

Further information

• Handle: http://hdl.handle.net/10419/43755
• URN: urn:nbn:de:hbz:361-8249
• Last update: 10.03.2025, 11:45 AM CET