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An Optimal Control Model of a Closed Economy with Government Participation

Author Affiliations

  • 1Department of Mathematics, Kwame Nkrumah University of Science and Technology, Kumasi, GHANA
  • 2Department of Mathematics, Kwame Nkrumah University of Science and Technology, Kumasi, GHANA
  • 3Department of Mathematics, Kwame Nkrumah University of Science and Technology, Kumasi, GHANA

Res. J. Mathematical & Statistical Sci., Volume 2, Issue (7), Pages 7-16, July,12 (2014)

Abstract

This paper seeks to build a deterministic optimal control model to fit the Ghanaian economy. The model looks at a simple closed economy with government participation. The Hamilton-Pontryagin�s theory was employed to analyze the systems obtained. Numerical simulations were also used to obtain numerical solutions to the model. Results obtained from the analysis performed suggest that the system is controllable. The short to long term predictions of the system are generally very good. The results obtained also suggest that the 2020 goal of Ghana becoming a middle income economy is attainable if the control measures prescribed are applied.

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