title: Age-structured optimal control in population economics.
abstract: 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.
authors.affiliation: Institute for Econometrics, Operations Research and Systems Theory, Vienna University of Technology, Argentinierstrasse 8/119, A-1040 Vienna, Austria. or@e119ws1.tuwien.ac.at
authors.forename: Gustav
authors.initials: G
authors.lastname: Feichtinger
authors.forename: Alexia
authors.initials: A
authors.lastname: Prskawetz
authors.forename: Vladimir M
authors.initials: VM
authors.lastname: Veliov
mesh_terms: 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