The maximum principle used in
optimal control theory includes the condition that the rate of change of the costate variable equals the negative of the partial derivative of the Hamiltonian with respect to the state variable.
Xu and Ghezzi (2003) price government debt and calculate continuous-time fair yield spreads and default probabilities using
optimal control theory.
However, in general, the value function depends on x and t and must be calculated numerically: it is then much more difficult to apply the verification theorems of stochastic
optimal control theory (Fleming and Rishel, 1975).
The central result in
optimal control theory is given by the celebrated Pontryagin maximum principle [11], which is a necessary optimality condition.
This paper describes a novel unifying formulation of turbulence modeling via the
optimal control theory.
Optimal Control Theory and Economic Analysis, 2, North Holland, Amsterdam.
Optimal control theory is used to model the government decision-making process, and to develop and discuss a number of implications for taxing and enforcement behavior.
In order to make a comparison between the performance index of different controllers, this paper also presents an optimal control law applied to the same linear slide (Figure 1);
optimal control theory focuses on the design of controllers to perform their objective and concurrently satisfy physical constraints to optimize predetermined performance criteria (Hassani and Lee [19]).
Specialists in
optimal control theory and the calculus of variations working on problems on unbounded domains attended the workshop present papers more or less reflecting the talks they delivered at the workshop.
During the late 1980s, economist Flynn and a colleague at the University of the Pacific developed the Unified Theory of Prices using
Optimal Control Theory, and when Gitadez arrived soon after, the two of them used it to trace the prices of Spanish American silver, and discovered that its dominant end customer was Ming China, where somehow no Western economic historian had ever thought to look for it.
Optimal control theory deals with finding control functions that minimize cost functions for systems described by differential equations.
