DYNAMIC OPTIMIZATION AND ECONOMIC DECISION-MAKING: A THEORETICAL AND ANALYTICAL PERSPECTIVE
DOI:
https://doi.org/10.55640/Keywords:
dynamic optimization, intertemporal choice, Hamiltonian, economic decision-making, optimal control, stochastic processesAbstract
This study examines the theoretical foundations and practical implications of dynamic optimization in economic decision-making. It emphasizes how intertemporal choices, constrained by evolving economic systems, shape rational behavior in both microeconomic and macroeconomic contexts. The analysis highlights the role of optimal control theory, the Hamiltonian framework, and stochastic extensions in explaining consumption smoothing, capital accumulation, and policy formulation.
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