An optimal control model for multisectoral investment planning in Tunisia

Models for Analyzing Comparative Advantage

“…This chapter follows in that tradition by using the control theory models of Kendrick and Taylor (1970) for South Korea and Martens and Pindyck (1975) for Tunisia as examples. These models illustrate the methodology and provide a good basis for discussing the strengths and weaknesses of this class of models for determining dynamic comparative advantage.…”

“…An alternative approach is much easier to explain but does not have such nice theoretical properties. This is the quadratic tracking fimction which is commonly used in control theory and which was ^jplied to a growth model of Tunisia by Martens and Pindyck (1975), That approach will be discussed in some detail later in the chapter so no more discussion of it will be given here.…”