Dynamic Economic Models and Optimal Control: Fourth Viennese Workshop, Vienna, Austria, 12-14 June 1991

This is the fourth issue in a series of volumes on optimal control theory and its economic applications. This volume reflects the important role which optimal control theory and differential games play in economics and management science. They provide powerful tools for the analysis of intertemporal decision processes arising in economics. The first part of the volume deals with optimal control theory and its applications to economics. The second part contains a selection of contributions to applied dynamic game theory. Finally, in the third part the strange behaviour of various nonlinear dynamical systems is investigated. It illustrates the fact that persistent oscillations and chaos play an increasing role in mathematical economics. In addition to including chaos theory a second innovation in this fourth volume of the series is that for the first time selected discussion remarks have been attached as addenda to some of the contributions.

Table of Contents:
Optimal Control. On the ubiquity of trade in capital goods: Jumps in the state variables (D. Leonard). The net present value rule in a dynamic model: an addendum on the paper by D. Leonard (P.A. Verheyen). A Hamiltonian approach to recursive utility maximization (G. Sorger). Compactness of sets of solutions to infinite horizon optimal control problems (M. Sieveking). ODE control problems including the Preisach hysteresis operator: Necessary optimality conditions (M. Brokate). Optimization of guarantees in multicriteria problems (M.E. Salukvadze, V.I. Zhukovskii). The jump in models with irreversible investments (P.A. Verheyen). A dynamic formulation of the foreign aid process (M.C. Kemp, N.V. Long, K. Shimomura). A two-sector dynamic general-equilibrium model of distribution (K. Shimomura). Investment and regulation - Increasing returns to scale and adjustment cost clause (S. Katayama, F. Abe). Factor intensity and Hopf bifurcations (K. Nishimura, H. Takahashi). A dynamic model of the firm with cyclical innovations and production: Towards a Schumpeterian theory of the firm (A. Greiner). Stable resource-employment limit cycles in an optimally regulated fishery (G. Feichtinger, V. Kaitala, A.J. Novak). An addendum on the paper by G. Feichtinger, V. Kaitala, A.J. Novak (N.V. Long). Income subsidizing and fisheries development - An analysis of stabilizing management (V. Kaitala, M. Hilden, G. Leitmann). Limitations of quadratic penalties for policy analysis: The example of an oil import fee (F. Wirl). Target control of dynamic economic systems: A note on the Preston-Sieper conditions (A. Ritschl). The economics of everything: The economics of time (M.A. El-Hodiri). The dynamics of extramarital affairs (S. Jorgensen). An addendum on the paper by S. Jorgensen (M.L. Petit). Differential Games. On the applications of differential games theory in robust controller design for economic systems (T. Basar). An addendum on the paper by T. Basar (R. Neck). Capital accumulation and entry deterrence: A clarifying note (C. Fershtman, A.J. de Zeeuw). Integral games: Theory and applications (C. Fershtman, M.I. Kamien, E. Muller). Optimal taxation on profit and pollution within a macroeconomic framework (R.H.J.M. Gradus, P.M. Kort). Non-cooperative and cooperative solutions to a differential game model of international economic stabilization policies (E.J. Dockner, R. Neck). The dynamics of production in oligopolistic markets with learning (M.L. Petit). An addendum on the paper by M.L. Petit (A. Luhmer). A game theoretic approach to oligopoly regulation (P. Caravani, M.A. Miceli). An addendum on the paper by P. Caravani and M.A. Miceli (R. Gradus). Optimal portfolio selection as a solution to an axiomatic bargaining game (A. Bassetti, C. Torricelli). Nonlinear Dynamical Systems. Periodic, quasi-periodic and chaotic dynamics in a simple macro model with Hicksian nonlinearities (C.H. Hommes).