Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
5099289 | Journal of Economic Dynamics and Control | 2007 | 18 Pages |
Abstract
This paper studies the pollution accumulation problem so as to maximize the long-run average welfare within a stochastic framework. We consider a sequence of optimal pollution accumulation problems under the discounted criterion. The Hamilton - Jacobi - Bellman (HJB, for short) equation associated with the long-run average problem is obtained as a limit of HJB equations for discounted models. In particular, we solve the problem for first-order disutility functions and present some comparative dynamics results.
Keywords
Related Topics
Physical Sciences and Engineering
Mathematics
Control and Optimization
Authors
Kazuhito Kawaguchi, Hiroaki Morimoto,