Optimal Regime Switching and Threshold Effects: Theory and Application to a Resource Extraction Problem under Irreversibility
type: Dataset
contact point: Organization
  fn: CCSD
keyword: infoeu-reposemanticspreprint
keyword: irreversibility
keyword: threshold-effects
keyword: multi-stage-optimal-control
keyword: preprints-working-papers-
keyword: non-renewable-resources
keyword: backstop-technology
keyword: shsecohumanities-and-social-scienceseconomics-and-finance
landing page: https://shs.hal.science/halshs-00793200
description: We consider a general control problem with two types of optimal regime switch. The first one concerns technological and/or institutional regimes indexed by a finite number of discrete parameter values, and the second features ecological-like regimes relying on given threshold values for given state variables. We propose a general optimal control framework allowing to derive the first-order optimality conditions and in particular to characterize the geometry of the shadow prices at optimal switching times (if any). We apply this new optimal control material to address the problem of the optimal management of natural resources under ecological irreversibility, and with the possibility to switch to a backstop technology.
issued: 2026-05-14T05:55:30.910567
language: en
modified: 2026-05-14T05:55:30.910572

test_moissonnage_selune
type: Agent

Optimal Regime Switching and Threshold Effects: Theory and Application to a Resource Extraction Problem under Irreversibility
type: Distribution
access URL: https://shs.hal.science/halshs-00793200
format: HTML
issued: 2026-05-14T05:55:30.913373
modified: 2026-05-14T05:55:30.888744