DPSim Modelling: Dynamic Optimization in Large Scale Simulation Models

for Proposal: Although it is well established that dynamically optimal policies should be “closed loop” so that policies take into account changing conditions of a system, it is rare for such optimization to actually be carried out in large-scale simulation models. Computational limitations remain a major barrier to the study of dynamically optimal policies. Since the size of dynamic optimization problems grows approximately geometrically with the state * This paper draws extensively on Woodward, Richard T., Yong-Suhk Wui, and Wade L. Griffin, forthcoming, “Living With The Curse Of Dimensionality: Closed-Loop Optimization In A Large-Scale Fisheries Simulation Model” American Journal of Agricultural Economics (forthcoming). Permission has been granted for this purpose by the American Agricultural Economics Association. We acknowledge valuable editorial assistance by Michele Zinn and many helpful comments from Bill Provencher.