PARAMETRIC DYNAMIC PROGRAMMING FOR OPTIMAL GROWTH

Abstract

My concern in this paper is to suggest a parametric programming model for attaining a target rate of growth of real national income with full employment through an optimal combination of manipulative parameters subject to such constraints as the policymakers of an advanced mixed-open economy might impose on the optimal solution.1) Specifically this paper will discuss (a) the basic model with "instrument variables" based on dynamic assumptions, and (b) parametric programming proper including a numerical optimal solution.