Costate variables correctly value stocks at each instant (Q1092786): Difference between revisions
From MaRDI portal
Set profile property. |
Set OpenAlex properties. |
||
| Property / full work available at URL | |||
| Property / full work available at URL: https://doi.org/10.1016/0165-1889(87)90027-3 / rank | |||
Normal rank | |||
| Property / OpenAlex ID | |||
| Property / OpenAlex ID: W1971030920 / rank | |||
Normal rank | |||
Revision as of 21:09, 19 March 2024
scientific article
| Language | Label | Description | Also known as |
|---|---|---|---|
| English | Costate variables correctly value stocks at each instant |
scientific article |
Statements
Costate variables correctly value stocks at each instant (English)
0 references
1987
0 references
We prove this often mentioned result by showing that the marginal rate of increase of the maximand of a control problem with respect to the level of stock at any instant in the interior of the horizon is the value of the associated costate variable at that instant. This implies as a corollary that the marginal gain to be made over the future is the same as could be made over past and future.
0 references
marginal rate of increase
0 references
