# Dynamic Programming

by yamdizzle
Tags: dynamic, programming
 P: 15 How do we solve optimization problems with infinite horizon. I tried to look online for some guidance but nothing but just problems and no solution methods. For example how can I solve: maximize a_t $\in$[0,1] $\sum\frac{-2a_t}{3}$+log(S_T) where sum goes from 0 to T-1 subject to: s_t+1 = s_t *(1+a_t) Some sources say we can use backwards induction but doesn't really tell me how I can do so. Can someone explain the methodology or direct me to somewhere that explains it. Thanks