Optimal control and long-run dynamics for a spatial economic growth model with physical capital accumulation and pollution diffusion
Sebastian Anita
, Vincenzo Capasso
, Herb Kunze
,
2013, Applied Mathematics Letters, 26(8), pp.908-912
Abstract
In this work we analyze the large-time behavior of a spatially structured economic growth model coupling physical capital accumulation and pollution diffusion. This model extends other results in the literature along different directions. Alongside the classical Cobb–Douglas production function, a convex–concave production function is considered. We add a negative feedback to the production function in order to describe the (negative) influence of pollution on output, and therefore on capital accumulation. We also present an optimal control problem for the above model.