IDEAS home Printed from https://ideas.repec.org/a/taf/nmcmxx/v11y2005i2p125-133.html
   My bibliography  Save this article

A dynamic model of optimal investment in research and development with international knowledge spillovers

Author

Listed:
  • Sergei Aseev
  • Gernot Hutschenreiter
  • Arkady Kryazhimskiy
  • Andrey Lysenko

Abstract

We consider a two-country endogenous growth model where an economic follower absorbs part of the knowledge generated in a leading country. To solve a suitably defined infinite horizon dynamic optimization problem an appropriate version of the Pontryagin maximum principle is developed. The properties of optimal controls and the corresponding optimal trajectories are characterized by the qualitative analysis of the solutions of the Hamiltonian system arising through the implementation of the Pontryagin maximum principle.

Suggested Citation

  • Sergei Aseev & Gernot Hutschenreiter & Arkady Kryazhimskiy & Andrey Lysenko, 2005. "A dynamic model of optimal investment in research and development with international knowledge spillovers," Mathematical and Computer Modelling of Dynamical Systems, Taylor & Francis Journals, vol. 11(2), pages 125-133, June.
    • Handle: RePEc:taf:nmcmxx:v:11:y:2005:i:2:p:125-133
    DOI: 10.1080/1387395050500067361
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/1387395050500067361
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/1387395050500067361?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Halkin, Hubert, 1974. "Necessary Conditions for Optimal Control Problems with Infinite Horizons," Econometrica, Econometric Society, vol. 42(2), pages 267-272, March.
    2. Sergey Aseev & Gernot Hutschenreiter & Arkadii V. Kryazhimskii, 2002. "Optimal Investment in R&D with International Knowledge Spillovers," WIFO Working Papers 175, WIFO.
    3. HALKIN, Hubert, 1974. "Necessary conditions for optimal control problems with infinite horizons," LIDAM Reprints CORE 193, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Emmanuelle Augeraud-Véron & Raouf Boucekkine & Vladimir Veliov, 2019. "Distributed Optimal Control Models in Environmental Economics: A Review," AMSE Working Papers 1902, Aix-Marseille School of Economics, France.
    2. Sergey Aseev & Gernot Hutschenreiter & Arkadii V. Kryazhimskii, 2002. "Optimal Investment in R&D with International Knowledge Spillovers," WIFO Working Papers 175, WIFO.
    3. Ravi Kashyap, 2016. "Solving the Equity Risk Premium Puzzle and Inching Towards a Theory of Everything," Papers 1604.04872, arXiv.org, revised Sep 2019.
    4. Stefano Bosi & Carmen Camacho & David Desmarchelier, 2023. "Human capital and welfare," PSE-Ecole d'économie de Paris (Postprint) halshs-03920429, HAL.
    5. Stefano Bosi & Carmen Camacho & David Desmarchelier, 2020. "Human capital and welfare," PSE Working Papers halshs-02482543, HAL.
    6. Allise O. Wachs & Irwin E. Schochetman & Robert L. Smith, 2011. "Average Optimality in Nonhomogeneous Infinite Horizon Markov Decision Processes," Mathematics of Operations Research, INFORMS, vol. 36(1), pages 147-164, February.
    7. Feichtinger, Gustav & Grass, Dieter & Kort, Peter M. & Seidl, Andrea, 2021. "On the Matthew effect in research careers," Journal of Economic Dynamics and Control, Elsevier, vol. 123(C).
    8. P. Cartigny & P. Michel, 2003. "On the Selection of One Feedback Nash Equilibrium in Discounted Linear-Quadratic Games," Journal of Optimization Theory and Applications, Springer, vol. 117(2), pages 231-243, May.
    9. Engwerda, J.C., 1996. "The Infinite Horizon Open-Loop Nash LQ-Game," Other publications TiSEM bb9762e7-faab-4ad2-8dd8-4, Tilburg University, School of Economics and Management.
    10. Jean-Bernard Chatelain & Bruno Tinel & Karim Azizi & Nicolas Canry, 2012. "Are the No-Ponzi Game and the Transversality Conditions Relevant for Public Debt? A Keynesian Appraisal," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00686788, HAL.
    11. Azizi, Karim & Canry, Nicolas & Chatelain, Jean-Bernard & Tinel, Bruno, 2013. "Government Solvency, Austerity and Fiscal Consolidation in the OECD: A Keynesian Appraisal of Transversality and No Ponzi Game Conditions," EconStor Preprints 72550, ZBW - Leibniz Information Centre for Economics.
    12. Gordon, Sidartha & Marlats, Chantal & Ménager, Lucie, 2021. "Observation delays in teams and effort cycles," Games and Economic Behavior, Elsevier, vol. 130(C), pages 276-298.
    13. Robert S. Chirinko & Daniel J. Wilson, 2023. "Fiscal Foresight and Perverse Distortions to Firm Behavior: Anticipatory Dips and Compensating Rebounds," Working Paper Series 2021-15, Federal Reserve Bank of San Francisco.
    14. Kamihigashi, Takashi, 2005. "Necessity of the transversality condition for stochastic models with bounded or CRRA utility," Journal of Economic Dynamics and Control, Elsevier, vol. 29(8), pages 1313-1329, August.
    15. Donald A. R. George & Les Oxley & Ken Carlaw, 2003. "Economic Growth in Transition," Journal of Economic Surveys, Wiley Blackwell, vol. 17(3), pages 227-237, July.
    16. Carravetta, Francesco & Sorge, Marco M., 2013. "Model reference adaptive expectations in Markov-switching economies," Economic Modelling, Elsevier, vol. 32(C), pages 551-559.
    17. Marc Boissaux & Jang Schiltz, 2010. "An Optimal Control Approach to Portfolio Optimisation with Conditioning Information," LSF Research Working Paper Series 10-09, Luxembourg School of Finance, University of Luxembourg.
    18. Engwerda, Jacob C., 1998. "On the open-loop Nash equilibrium in LQ-games," Journal of Economic Dynamics and Control, Elsevier, vol. 22(5), pages 729-762, May.
    19. Sergey M. Aseev, 2023. "Necessary Conditions for the Optimality and Sustainability of Solutions in Infinite-Horizon Optimal Control Problems," Mathematics, MDPI, vol. 11(18), pages 1-15, September.
    20. Halkos, George & Papageorgiou, George, 2015. "Dynamical methods in Environmental and Resource Economics," MPRA Paper 67845, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:taf:nmcmxx:v:11:y:2005:i:2:p:125-133. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/NMCM20 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.