scholarly journals On the terminal condition for the Bellman equation for dynamic optimization with an infinite horizon

2011 ◽  
Vol 24 (6) ◽  
pp. 943-949 ◽  
Author(s):  
Agnieszka Wiszniewska-Matyszkiel
Keyword(s):  
Dynamic Optimization ◽  
Bellman Equation ◽  
Infinite Horizon ◽  
Terminal Condition

scholarly journals A CORRESPONDENCE-THEORETIC APPROACH TO DYNAMIC OPTIMIZATION

2009 ◽  
Vol 13 (S1) ◽  
pp. 97-117 ◽  
Author(s):  
C. D. Aliprantis ◽  
G. Camera
Keyword(s):  
Fixed Point ◽  
Dynamic Optimization ◽  
Fixed Point Theorems ◽  
Infinite Horizon ◽  
Economic Models ◽  
Theoretic Approach ◽  
Transversality Conditions ◽  
Recursive Formulation ◽  
Bellman Equations ◽  
The Common

This paper introduces a method of optimization in infinite-horizon economies based on the theory of correspondences. The proposed approach allow us to study time-separable and non-time-separable dynamic economic models without resorting to fixed point theorems or transversality conditions. When our technique is applied to the standard time-separable model it provides an alternative and straightforward way to derive the common recursive formulation of these models by means of Bellman equations.

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