MPIDR Working Paper
Age-structured optimal control in population economics
MPIDR Working Paper WP-2002-045, 31 pages.
Rostock, Max Planck Institute for Demographic Research (September 2002)
This paper brings both intertemporal and age-dependent features to a theory of population policy at the macro-level. A Lotkatype renewal model of population dynamics is combined with a Solow/Ramsey economy. By using a new maximum principle for distributed parameter control we derive meaningful qualitative results for the optimal migration path and the optimal saving rate.