Accession Number:

AD0701913

Title:

SUFFICIENT CONDITIONS FOR OPTIMALITY IN INFINITE HORIZON LINEAR ECONOMIC MODELS.

Descriptive Note:

Technical rept.,

Corporate Author:

STANFORD UNIV CALIF OPERATIONS RESEARCH HOUSE

Personal Author(s):

• Hopkins,David S. P.

Report Date:

1969-03-01

Pagination or Media Count:

153.0

Abstract:

The report contains some results concerning the numerical computation of optimal solutions to infinite-horizon dynamic linear programs. Models of this type arise in several contexts in the economics literature. Two sets of sufficient conditions for optimality are formulated. These refer to a general dynamic structure in which the constraints for any period, t, do not include any variable whose time subscript is greater than t. The sufficiency theorems proved in Chapter 3 ensure that a given solution which meets one of these sets of conditions is infinite-horizon optimal. The remainder of the work is concerned with demonstrating how one might construct an infinite-horizon optimal solution in practice. For this purpose, two economic applications are considered - a model for equipment replacement and capacity expansion, and a development planning model. Author

Descriptors:

• (*ECONOMICS
• MATHEMATICAL MODELS)
• (*LINEAR PROGRAMMING
• NUMERICAL ANALYSIS)
• REPLACEMENT THEORY
• MANAGEMENT PLANNING AND CONTROL
• MATRICES(MATHEMATICS)
• THESES

Subject Categories:

• Administration and Management
• Economics and Cost Analysis
• Operations Research

Distribution Statement:

APPROVED FOR PUBLIC RELEASE