| Abstract: | In this paper we discuss the use of optimal control methods for computing non-linear continuous optimal growth models. We have discussed various recently developed algorithms for computing optimal control, involving step-function approximations, Runge–Kutta solutions of differential equations, and we suggest that the discretization approach is preferable to methods which solve first-order optimality conditions. We have surveyed some powerful computer programs by
:
,
and
for computing such models numerically. These programs have no substantial optimal growth modelling applications yet, although they have numerous engineering and scientific applications. A computer program named
by
is developed in this study. Results are reported for computing the Kendrick–Taylor optimal growth model using
and
programs based on the discretization approach. References are made to the computational experiments with
and
. The results are used to compare and evaluate mathematical and economic properties, and computing criteria. While several computer packages are available for optimal control problems, they are not always suitable for particular classes of control problems, including some economic growth models. The
-based
and
, however, offer good opportunities for computing continuous optimal growth models. It is argued in this paper, that optimal growth modellers may find that these recently developed algorithms and computer programs are relatively preferable for a large variety of optimal growth modelling studies. |
