A ‘funnel’ turnpike theorem for optimal growth problems with discounting |
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Authors: | C.D. Feinstein S.S. Oren |
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Affiliation: | University of Santa Clara, Santa Clara, CA 95053, USA;University of California, Berkeley, CA 94720, USA |
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Abstract: | ![]() A turnpike theorem for the optimal control problem with discounting is given. The optimal trajectory is shown to lie in an exponentially bounded region of the optimal steady-state. This region, referred to as a funnel, is determined by the discount rate of the problem. The funnel theorem reduces to the classical turnpike theorem when the discount rate is zero. |
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