In this paper, a novel analytical cross-layer design framework for dynamic resource management of wireless networks is proposed. First, dynamic bandwidth and time resource allocation policies for a single-user under fading channels that maximize capacity are derived. The analysis is then extended to multi-user environments, where the resource allocation is jointly optimized across both physical and data link layers. A closed-form expression of a QoS measure, mean delay in this case, is derived as a function of layer 2 traffic, multiple access contention from other users, and allocated data-rates at the physical layer. This mean delay expression is then used to efficiently allocate physical layer resources. We also study the effects of various contention mitigation policies on network capacity and average latency under optimum resource allocation strategies.

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