Age-structured optimal control in population economics.
This paper brings both intertemporal and age-dependent features to a theory of population policy at the macro-level. A Lotka-type renewal model of population dynamics is combined with a Solow/Ramsey economy. We consider a social planner who maximizes an aggregate intertemporal utility function which depends on per capita consumption. As control policies we consider migration and saving rate (both age-dependent). By using a new maximum principle for age-structured control systems we derive meaningful results for the optimal migration and saving rate in an aging population. The model used in the numerical calculations is calibrated for Austria.
Feichtinger
Gustav
G
Institute for Econometrics, Operations Research and Systems Theory, Vienna University of Technology, Argentinierstrasse 8/119, A-1040 Vienna, Austria. or@e119ws1.tuwien.ac.at
Prskawetz
Alexia
A
Veliov
Vladimir M
VM
D000328:Adult; D000367:Age Factors; D000368:Aged; D000369:Aged, 80 and over; D001317:Austria; D005260:Female; D006801:Humans; D008297:Male; D008875:Middle Aged; D008962:Models, Theoretical; D011157:Population Dynamics