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A new class of problems in the calculus of variations

Ekeland, Ivar; Long, Yiming; Zhou, Qinglong (2013), A new class of problems in the calculus of variations, Regular and Chaotic Dynamics, 18, 6, p. 553-584. 10.1134/S1560354713060014

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Type
Article accepté pour publication ou publié
Date
2013
Journal name
Regular and Chaotic Dynamics
Volume
18
Number
6
Publisher
Springer
Pages
553-584
Publication identifier
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Author(s)
Ekeland, Ivar
CEntre de REcherches en MAthématiques de la DEcision [CEREMADE]
Long, Yiming

Zhou, Qinglong
Abstract (EN)
We revisit the neo-classical model of optimal growth by introducing an additional term, due to Chichilnisky, which embodies society's concern for the long-term welfare of future generations. We show that the additional term causes time inconsistency, so there is no such thing as an optimal solution. However, we introduce a notion of equilibrium solution and we prove that there is a continuum of such solutions
Subjects / Keywords
Optimal growth model; time inconsistency; intergenerational justice