Geometrical methods for analyzing the optimal management of tipping point dynamics

Open Access
Authors
Publication date 08-2020
Journal Natural Resource Modeling
Article number e12258
Volume | Issue number 33 | 3
Number of pages 31
Organisations
  • Faculty of Economics and Business (FEB) - Amsterdam School of Economics Research Institute (ASE-RI)
  • Faculty of Economics and Business (FEB)
Abstract Natural resources are not infinitely resilient and should not be modeled as being such. Finitely resilient resources feature tipping points and history dependence. This paper provides a didactical discussion of mathematical methods that are needed to understand the optimal management of such resources: viscosity solutions of Hamilton–Jacobi–Bellman equations, the costate equation and the associated canonical equa- tions, exact root counting, and geometrical methods to analyze the geometry of the invariant manifolds of the canonical equations.
Document type Article
Language English
Published at https://doi.org/10.1111/nrm.12258
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Wagener-2020-Natural_Resource_Modeling (Final published version)
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