Dynamic Analysis Method of Economics for Optimal Land Requisition Path for the Government

Abstract

The selection of Chinese rural land requisition path plays a crucial role on whether social benefits occurred by land requisition could be maximized. In this paper the dynamic optimization problem of land requisition is aimed at by the government. A dynamic analysis method is utilized through Optimal Control Theory. The dynamic optimization model is established with no budget-constraining then its optimal solution and phase diagram are shown in its approaching way. The dynamic equilibrium is illustrated as a different picture from the static equilibrium in many aspects. Furthermore, a few suggestions are advanced for the government.