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Numerical Search for a Global Solution in a Two-Mode Economy Model with an Exhaustible Resource of Hydrocarbons

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Abstract

This study is devoted to the numerical search for the optimal trajectory in the model of economic growth with two sectors: production and energy. In the energy sector, there is an opportunity to use energy resources from limited reserves. Switching the economy to a mode of operation without a resource, the moment of which is not fixed and depends on the behavior of agents, introduces features into the phase portrait and necessitates a numerical search for a global solution, which is what this study is aimed at. To solve this multidimensional problem, it is proposed to use a shooting algorithm using a modification of Newton’s method to update the starting point and also discuss the nuances of applying this approach to economic problems of this type.

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Funding

This study was prepared as part of a state assignment of the Russian Presidential Academy of National Economy and Public Administration (RANEPA).

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Authors and Affiliations

  1. Institute of Applied Economic Research, Russian Presidential Academy of National Economy and Public Administration, Moscow, Russia

    E. A. Leonov & A. V. Polbin

  2. Gaidar Institute for Economic Policy, Moscow, Russia

    E. A. Leonov & A. V. Polbin

Authors
  1. E. A. Leonov
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  2. A. V. Polbin
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Corresponding authors

Correspondence to E. A. Leonov or A. V. Polbin.

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The authors declare that they have no conflicts of interest.

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Leonov, E.A., Polbin, A.V. Numerical Search for a Global Solution in a Two-Mode Economy Model with an Exhaustible Resource of Hydrocarbons. Math Models Comput Simul 14, 213–223 (2022). https://doi.org/10.1134/S2070048222020107

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  • DOI: https://doi.org/10.1134/S2070048222020107

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