“The Riccati Equation - An Economic Fundamental Equation which Describes Marginal Movement in Time”
Authors: Lars P. Lystad, Per-Ole Nyman and Ralph Høybakk,Affiliation: Narvik University College
Reference: 2006, Vol 27, No 1, pp. 3-21.
Keywords: Riccati equation, marginal time movement, economic interpretation, the marginal Hamiltonian function
Abstract: The objective of this article is to demonstrate that the Riccati equation is an economic fundamental equation, which is marginally descriptive in time for the large majority of economic systems. It is also an objective to interpret the Riccati equation and the corresponding relations in terms of economics. The article shows that there is a close relationship between the marginal Hamiltonian function and the Riccati equation. The marginal Hamiltonian function will be an expression of the accounts based on optimal behaviour including both the change in result and the change in balance.
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DOI: 10.4173/mic.2006.1.1DOI forward links to this article:
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BibTeX:
@article{MIC-2006-1-1,
title={{The Riccati Equation - An Economic Fundamental Equation which Describes Marginal Movement in Time}},
author={Lystad, Lars P. and Nyman, Per-Ole and Høybakk, Ralph},
journal={Modeling, Identification and Control},
volume={27},
number={1},
pages={3--21},
year={2006},
doi={10.4173/mic.2006.1.1},
publisher={Norwegian Society of Automatic Control}
};