Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/43755 
Year of Publication: 
2005
Series/Report no.: 
Working Papers No. 376
Publisher: 
Bielefeld University, Institute of Mathematical Economics (IMW), Bielefeld
Abstract: 
We solve an optimal growth model in continuous space, continuous and bounded time. The optimizer chooses the optimal trajectories of capital and consumption across space and time by maximizing an objective function with both space and time discounting. We extract the corresponding Pontryagin conditions and prove their sufficiency. We end up with a system of two parabolic differential equations with the corresponding boundary conditions. Then, we study the roles of initial capital and technology distributions over space in various scenarios.
Subjects: 
Economics
Economic geography
Parabolic differential equations
Optimal control
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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