Positive switching systems and the wealth distribution problem

DOI10.1007/S10957-024-02579-ZMaRDI QIDQ7031925zbMATH OpenFDO

Authors Franco Blanchini, Daniele Casagrande, Patrizio Colaneri, Stefanny Ramirez, Dario Bauso

Publication date 6 February 2025

Published in Journal of Optimization Theory and Applications (Search for Journal in Brave)

Full work available at URL https://research.rug.nl/en/publications/24e64ae8-f64e-4ac6-a8a7-ff47705db0ee

zbMATH Keywords

Hamilton-Jacobi-Bellman equationsLyapunov-Metzler equationsoptimal controlPontryagin maximum principlepositive switching systems

Mathematics Subject Classification ID

Hamilton-Jacobi equations (35F21) Optimality conditions for problems involving ordinary differential equations (49K15) Sensitivity, stability, well-posedness (49K40)

Review text

The authors study the socio-economic problem of optimal wealth distribution in a society by defining a positive switching systems model. In such a socio-economic system, the collectivity is interpreted as a collection of individuals each generating a quantity of wealth proportional to her/his production rate, a fraction of this wealth being collected by a regulatory authority and re-distributed according to some criterion. The dynamic evolution of this system is determined by a control variable which accounts for the percentage of wealth that the individuals share. The main focus is on a supervised scenario where the control variable is chosen in order to share the wealth in an ``optimal way, that is in a way that maximizes the total wealth of the collectivity (while a section is dedicated to analyse what happens when the control variable is decided by ``vote, each individual voting for the value that maximizes her/his own wealth). With the viewpoint of positive switching systems, general properties can be derived (in order to obtain a super-optimal feasible solution to the optimal control problem (by relaxing the constraint on the control input), a suboptimal solution to the optimal control problem (by applying the theory of Lyapunov-Metzler equations) and conditions on the matrices involved in the system guaranteeing the existence of a solution) while approximated numerical solutions, upper and lower bounds, as well as qualitative insights are discussed. The arguments provided in the paper emphasize that a primal-dual method can fruitfully be applied. The authors conclude by noting that an interesting future research line lies in considering non-linear production functions instead of the linear one considered here.

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