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From 0D to 1D spatial models using OCMat

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  • Dieter Grass
Abstract
We show that the standard class of optimal control models in OCMat can be used to analyze 1D spatial distributed systems. This approach is an intermediate step on the way to the FEM discretization approach presented in Grass and Uecker (2015). Therefore, the spatial distributed model is transformed into a standard model by a finite difference discretization. This (high dimensional) standard model is then analyzed using OCMAT. As an example we apply this method to the spatial distributed shallow lake model formulated in Brock and Xepapadeas (2008). The results are then compared with those of the FEM discretization in GRass and Uecker (2015)

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  • Dieter Grass, 2015. "From 0D to 1D spatial models using OCMat," Papers 1505.03956, arXiv.org.
    • Handle: RePEc:arx:papers:1505.03956
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    References listed on IDEAS

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    1. Karl-Göran Mäler & Anastasios Xepapadeas & Aart de Zeeuw, 2003. "The Economics of Shallow Lakes," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(4), pages 603-624, December.
    2. Dieter Grass & Jonathan P. Caulkins & Gustav Feichtinger & Gernot Tragler & Doris A. Behrens, 2008. "Optimal Control of Nonlinear Processes," Springer Books, Springer, number 978-3-540-77647-5, December.
    3. Wagener, F. O. O., 2003. "Skiba points and heteroclinic bifurcations, with applications to the shallow lake system," Journal of Economic Dynamics and Control, Elsevier, vol. 27(9), pages 1533-1561, July.
    4. Michel, Philippe, 1982. "On the Transversality Condition in Infinite Horizon Optimal Problems," Econometrica, Econometric Society, vol. 50(4), pages 975-985, July.
    5. Brock, William & Engström, Gustav & Xepapadeas, Anastasios, 2014. "Spatial climate-economic models in the design of optimal climate policies across locations," European Economic Review, Elsevier, vol. 69(C), pages 78-103.
    6. Kiseleva, T. & Wagener, F.O.O., 2011. "Bifurcations of Optimal Vector Fields," CeNDEF Working Papers 11-05, Universiteit van Amsterdam, Center for Nonlinear Dynamics in Economics and Finance.
    7. Grass, D., 2012. "Numerical computation of the optimal vector field: Exemplified by a fishery model," Journal of Economic Dynamics and Control, Elsevier, vol. 36(10), pages 1626-1658.
    8. Brock, William & Xepapadeas, Anastasios, 2008. "Diffusion-induced instability and pattern formation in infinite horizon recursive optimal control," Journal of Economic Dynamics and Control, Elsevier, vol. 32(9), pages 2745-2787, September.
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