Existence Results and Finite Horizon Approximates for Infinite Horizon Optimization Problems
Sjur Didrik Flåm, Roger J.‐B. Wets · Econometrica · 1987
Existence is obtained under a growth condition on paths that are asymptotic to turnpikes whose growth rate equals or exceeds that of the discount rate. Finite horizon approximates, that are computationally tractable, are used t o obtain solutions that yield lower and upper bounds for the optimal value. The technique used is that of epi-convergence. The lower bound estimates come from smoothing out of the tails of the trajectories, and the upper bound estimates from trajectories that are tail station ary. Copyright 1987 by The Econometric Society.