Diamond-Phi_h dynamics on time scales with an application to economics

Document Type: Research Paper

Authors

1 Department of Mathematics, Faculty of Science, University of Lagos, Akoka, Nigeria.

2 Department of Mathematics, Faculty of Science, University of Lagos, Lagos, Nigeria

10.22075/ijnaa.2020.19155.2059

Abstract

Conventional dynamic models in economics are usually expressed in discrete or continuous time. A new modelling technique-time scales calculus-unifies both of these approaches into a general framework. We present and construct a dynamic optimization problem from economics in which the utility function is $\phi_{h}$-concave and the value function and constraints are on different time scales. The calculus of variations and optimal control are employed, with the aid of the newly introduced diamond-$\phi_{h}$ dynamic calculus by the authors [12] on time scales, to obtain a solution. The Hermite-Hadamard inequality with the diamond-$\phi_{h}$ dynamic integral follows a proof of the new model. The new diamond-$\phi_{h}$ time scale model unifies various related existing models involving general and more complex time domains.

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