Advanced Search
MyIDEAS: Login to save this article or follow this journal

Monotonicity and continuity of the critical capital stock in the Dechert–Nishimura model

Contents:

Author Info

  • Akao, Ken-Ichi
  • Kamihigashi, Takashi
  • Nishimura, Kazuo

Abstract

We show that the critical capital stock of the Dechert and Nishimura (1983) model is a decreasing and continuous function of the discount factor. We also show that the critical capital stock merges with a nonzero steady state as the discount factor decreases to a certain boundary value, and that the critical capital stock converges to the minimum sustainable capital stock as the discount factor increases to another boundary value.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://www.sciencedirect.com/science/article/pii/S0304406811000772
Download Restriction: Full text for ScienceDirect subscribers only

As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.

Bibliographic Info

Article provided by Elsevier in its journal Journal of Mathematical Economics.

Volume (Year): 47 (2011)
Issue (Month): 6 ()
Pages: 677-682

as in new window
Handle: RePEc:eee:mateco:v:47:y:2011:i:6:p:677-682

Contact details of provider:
Web page: http://www.elsevier.com/locate/jmateco

Related research

Keywords:

Other versions of this item:

Find related papers by JEL classification:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. Skiba, A K, 1978. "Optimal Growth with a Convex-Concave Production Function," Econometrica, Econometric Society, Econometric Society, vol. 46(3), pages 527-39, May.
  2. Haunschmied, Josef L. & Feichtinger, Gustav & Hartl, Richard F. & Kort, Peter M., 2005. "Keeping up with the technology pace: A DNS-curve and a limit cycle in a technology investment decision problem," Journal of Economic Behavior & Organization, Elsevier, Elsevier, vol. 57(4), pages 509-529, August.
  3. Nguyen Manh Hung & Cuong Le Van & Philippe Michel, 2009. "Non-convex Aggregate Technology and Optimal Economic Growth," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers), HAL halshs-00267100, HAL.
  4. Levy, Amnon & Neri, Frank, 2004. "Macroeconomic Aspects of Substance Abuse: Diffusion, Productivity and Optimal Control," Economics Working Papers, School of Economics, University of Wollongong, NSW, Australia wp04-22, School of Economics, University of Wollongong, NSW, Australia.
  5. Florian Wagener, 2004. "Structural analysis of optimal investment for firms with non-concave revenues," Computing in Economics and Finance 2004, Society for Computational Economics 187, Society for Computational Economics.
  6. Kamihigashi, Takashi & Roy, Santanu, 2007. "A nonsmooth, nonconvex model of optimal growth," Journal of Economic Theory, Elsevier, Elsevier, vol. 132(1), pages 435-460, January.
  7. Dechert, W. Davis & Nishimura, Kazuo, 1983. "A complete characterization of optimal growth paths in an aggregated model with a non-concave production function," Journal of Economic Theory, Elsevier, Elsevier, vol. 31(2), pages 332-354, December.
  8. Mukul Majumdar & Manfred Nermuth, 1982. "Dynamic Optimization in Non-Convex Models with Irreversible Investment: Monotonicity and Turnpike Results (Now published in Zeitschrift für National-Ökonomie (Journal of National Economics), vol.42,," STICERD - Theoretical Economics Paper Series, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE 40, Suntory and Toyota International Centres for Economics and Related Disciplines, LSE.
  9. Amir, Rabah & Mirman, Leonard J & Perkins, William R, 1991. "One-Sector Nonclassical Optimal Growth: Optimality Conditions and Comparative Dynamics," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 32(3), pages 625-44, August.
  10. Majumdar, Mukul & Mitra, Tapan, 1982. "Intertemporal allocation with a non-convex technology: The aggregative framework," Journal of Economic Theory, Elsevier, Elsevier, vol. 27(1), pages 101-136, June.
  11. LE VAN, Cuong & MORHAIM, Lisa, 2001. "Optimal growth models with bounded or unbounded returns: a unifying approach," CORE Discussion Papers, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) 2001034, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  12. Wirl, Franz, 2004. "Thresholds in concave renewable resource models," Ecological Economics, Elsevier, Elsevier, vol. 48(2), pages 259-267, February.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Cuong Le Van & Cagri Saglam & Agah Turan, 2014. "Optimal Growth Strategy Under Dynamic Threshold," Working Papers, Department of Research, Ipag Business School 2014-123, Department of Research, Ipag Business School.

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:eee:mateco:v:47:y:2011:i:6:p:677-682. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.