Optimal stochastic allocation of funds for balanced development of transportation and non-transportation within a region

With Chen M F´s original researches on the stochastic models of economic optimization, this paper finds Prescott´s paradigm is a suitable method to integrate LU Da-dao´s regional balanced development theory with ZHANG Jin-shui´s dynamic economics control model. As results of the integration process, this paper acquires a stochastic optimal control investment model for the coordinated developing of transportation and non-transportation within a region in China, derives an effective Euler equation for the optimum allocation. This paper does a numerical experiment using the model and the data of Jiangsu province, finds the numerical results show Jiangsu´s developing well and the results helpful for Jiangsu to distribute optimally its total investment in transport and transport else, and presents concrete proposals for improving the developing of Jiangsu´s transportation.