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Optimal dynamic management of the population mix

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  • Dieter Grass
  • Gernot Tragler

Abstract

In this paper we present an optimal control model that addresses a central challenge of modern housing policy: deconcentrating poverty via “housing mobility programs”, which move poor families into middle-class neighborhoods. The tension is that helping poor families is clearly an opportunity, but pursuing these programs too aggressively increases the risk of inducing middle-class flight. Previous studies in this area of research considered only one state variable representing the middle-class families; here, we add one more state variable to allow for an explicit consideration of the poor families. While our model is still somewhat stylized given the sophisticated structure of the real world problem, we show that it exhibits complex behavior including multiple equilibria, (strong and weak) DNSS curves, and indifference points for which there exist two different paths approaching one and the same steady state in the long run. Copyright Springer-Verlag 2010

Suggested Citation

  • Dieter Grass & Gernot Tragler, 2010. "Optimal dynamic management of the population mix," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 18(4), pages 539-551, December.
    • Handle: RePEc:spr:cejnor:v:18:y:2010:i:4:p:539-551
    DOI: 10.1007/s10100-010-0174-3
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    References listed on IDEAS

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    1. G. Feichtinger & F. Wirl, 2000. "Instabilities in Concave, Dynamic, Economic Optimization," Journal of Optimization Theory and Applications, Springer, vol. 107(2), pages 275-286, November.
    2. Betts, Julian R. & Fairlie, Robert W., 2003. "Does immigration induce 'native flight' from public schools into private schools?," Journal of Public Economics, Elsevier, vol. 87(5-6), pages 987-1012, May.
    3. W. Davis Dechert & Kazuo Nishimura, 2012. "A Complete Characterization of Optimal Growth Paths in an Aggregated Model with a Non-Concave Production Function," Springer Books, in: John Stachurski & Alain Venditti & Makoto Yano (ed.), Nonlinear Dynamics in Equilibrium Models, edition 127, chapter 0, pages 237-257, Springer.
    4. 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, January.
    5. Skiba, A K, 1978. "Optimal Growth with a Convex-Concave Production Function," Econometrica, Econometric Society, vol. 46(3), pages 527-539, May.
    6. Charles T. Clotfelter, 2001. "Are Whites Still Fleeing? Racial Patterns and Enrollment Shifts in Urban Public Schools, 1987-1996," Journal of Policy Analysis and Management, John Wiley & Sons, Ltd., vol. 20(2), pages 199-221.
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    Cited by:

    1. Richard Hartl & Ulrike Leopold-Wildburger & Marion Rauner & Gerhard Sorger & Gernot Tragler & Vladimir Veliov, 2010. "Editorial “In honor of Gustav Feichtinger”," Central European Journal of Operations Research, Springer;Slovak Society for Operations Research;Hungarian Operational Research Society;Czech Society for Operations Research;Österr. Gesellschaft für Operations Research (ÖGOR);Slovenian Society Informatika - Section for Operational Research;Croatian Operational Research Society, vol. 18(4), pages 433-435, December.

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