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Application of a Dynamic Programming Method to Enlarged Version of Stoleru's Economic Model

Abstract This study applies dynamic programming and numerical methods to an enlarged version of Stoleru's economic model of Algeria to achieve optimization with respect to the criteria of full employment and balanced growth afterwards while maintaining a minimum per capita consumption. The model is expanded with new influential quantities including a state constraint, a disturbance factor, and an additional export sector. Results are presented for the case of Algeria in 1960 and 1961.