ISSN 1119-4618
 

Review Article 


A ONE SECTOR MODEL OF ECONOMIC GROWTH WITH UNCERTAIN TECHNOLOGY: AN EXAMPLE OF STEADY STATE ANALYSIS IN A STOCHASTIC OPTIMAL CONTROL PROBLEM

Ahmed Abdulkadir, Ali Adamu.

Abstract
This paper considered convergence of optimum levels of consumption and investment to a steady state to the case where output or technical progress is a random variable. The objective is the maximization of the expected value of the discounted sum of utilities facing uncertain technology or technological progress and, furthermore, our analysis is conducted in discrete time. Using elementary mathematical technique we established a stochastic analogue of convergence to a steady state-the modified golden rule. The direction we took was to examine steady state or limiting behavior of the optimal control and state variables. The stochastic process (14) converges to 0 or ∞ in probability.

Key words: Convergence, Optimal Control, Steady State, Economic Growth, Discrete Time, Stochastic Analogue.


 
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Pubmed Style

Abdulkadir A, Adamu A, . A ONE SECTOR MODEL OF ECONOMIC GROWTH WITH UNCERTAIN TECHNOLOGY: AN EXAMPLE OF STEADY STATE ANALYSIS IN A STOCHASTIC OPTIMAL CONTROL PROBLEM. JPAS. 2018; 15(1): 12-17. doi:10.5455/sf.9693


Web Style

Abdulkadir A, Adamu A, . A ONE SECTOR MODEL OF ECONOMIC GROWTH WITH UNCERTAIN TECHNOLOGY: AN EXAMPLE OF STEADY STATE ANALYSIS IN A STOCHASTIC OPTIMAL CONTROL PROBLEM. http://www.atbuscienceforum.com/?mno=9693 [Access: December 12, 2018]. doi:10.5455/sf.9693


AMA (American Medical Association) Style

Abdulkadir A, Adamu A, . A ONE SECTOR MODEL OF ECONOMIC GROWTH WITH UNCERTAIN TECHNOLOGY: AN EXAMPLE OF STEADY STATE ANALYSIS IN A STOCHASTIC OPTIMAL CONTROL PROBLEM. JPAS. 2018; 15(1): 12-17. doi:10.5455/sf.9693



Vancouver/ICMJE Style

Abdulkadir A, Adamu A, . A ONE SECTOR MODEL OF ECONOMIC GROWTH WITH UNCERTAIN TECHNOLOGY: AN EXAMPLE OF STEADY STATE ANALYSIS IN A STOCHASTIC OPTIMAL CONTROL PROBLEM. JPAS. (2018), [cited December 12, 2018]; 15(1): 12-17. doi:10.5455/sf.9693



Harvard Style

Abdulkadir, A., Adamu, . A. & (2018) A ONE SECTOR MODEL OF ECONOMIC GROWTH WITH UNCERTAIN TECHNOLOGY: AN EXAMPLE OF STEADY STATE ANALYSIS IN A STOCHASTIC OPTIMAL CONTROL PROBLEM. JPAS, 15 (1), 12-17. doi:10.5455/sf.9693



Turabian Style

Abdulkadir, Ahmed, Ali Adamu, and . 2018. A ONE SECTOR MODEL OF ECONOMIC GROWTH WITH UNCERTAIN TECHNOLOGY: AN EXAMPLE OF STEADY STATE ANALYSIS IN A STOCHASTIC OPTIMAL CONTROL PROBLEM. Science Forum (Journal of Pure and Applied Sciences), 15 (1), 12-17. doi:10.5455/sf.9693



Chicago Style

Abdulkadir, Ahmed, Ali Adamu, and . "A ONE SECTOR MODEL OF ECONOMIC GROWTH WITH UNCERTAIN TECHNOLOGY: AN EXAMPLE OF STEADY STATE ANALYSIS IN A STOCHASTIC OPTIMAL CONTROL PROBLEM." Science Forum (Journal of Pure and Applied Sciences) 15 (2018), 12-17. doi:10.5455/sf.9693



MLA (The Modern Language Association) Style

Abdulkadir, Ahmed, Ali Adamu, and . "A ONE SECTOR MODEL OF ECONOMIC GROWTH WITH UNCERTAIN TECHNOLOGY: AN EXAMPLE OF STEADY STATE ANALYSIS IN A STOCHASTIC OPTIMAL CONTROL PROBLEM." Science Forum (Journal of Pure and Applied Sciences) 15.1 (2018), 12-17. Print. doi:10.5455/sf.9693



APA (American Psychological Association) Style

Abdulkadir, A., Adamu, . A. & (2018) A ONE SECTOR MODEL OF ECONOMIC GROWTH WITH UNCERTAIN TECHNOLOGY: AN EXAMPLE OF STEADY STATE ANALYSIS IN A STOCHASTIC OPTIMAL CONTROL PROBLEM. Science Forum (Journal of Pure and Applied Sciences), 15 (1), 12-17. doi:10.5455/sf.9693