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
Sponsored in part by Contract AT(04-3)-326, Grants NSF-GP-6431, PHS-GM-14789.