Costate variables correctly value stocks at each instant (Q1092786): Difference between revisions
From MaRDI portal
Set OpenAlex properties. |
ReferenceBot (talk | contribs) Changed an Item |
||
| Property / cites work | |||
| Property / cites work: On the Differentiability of the Value Function in Dynamic Models of Economics / rank | |||
Normal rank | |||
| Property / cites work | |||
| Property / cites work: Duality theory for dynamic optimization models of economics: The continuous time case / rank | |||
Normal rank | |||
| Property / cites work | |||
| Property / cites work: Q4096701 / rank | |||
Normal rank | |||
| Property / cites work | |||
| Property / cites work: Q3995886 / rank | |||
Normal rank | |||
| Property / cites work | |||
| Property / cites work: Q3285814 / rank | |||
Normal rank | |||
| Property / cites work | |||
| Property / cites work: Optimal Growth with Intertemporally Dependent Preferences / rank | |||
Normal rank | |||
Latest revision as of 12:44, 18 June 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
