Instabilities in concave, dynamic, economic optimization (Q5925723): Difference between revisions

For control problems as in the title of the paper (where ``economic'' relates to the discounting in the objective) the authors remind in an interesting introduction that nonconcavity of the Hamiltonian can lead to instable steady states or to threshold properties and so on. Sometimes, there is even a perception, that nonconcavity is necessary to get such effects. But the authors show, that such economically relevant properties are also possible in strict concave models and give examples. Remarks to limit cycles, to Hopf bifurcation and to the thermodynamic principles of physics are enclosed in this paper.