Solution to nonlinear MHDS arising from optimal growth problems
AbstractIn this paper we propose a method for solving in closed form a general class of nonlinear modified Hamiltonian dynamic systems (MHDS). This method is used to analyze the intertemporal optimization problem from endogenous growth theory, especially the cases with two controls and one state variable. We use the exact solutions to study both uniqueness and indeterminacy of the optimal path when the dynamic system has not a well-defined isolated steady state. With this approach we avoid the linearization process, as well as the reduction of dimension technique usually applied when the dynamic system offers a continuum of steady states or no steady state at all.
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Bibliographic InfoArticle provided by Elsevier in its journal Mathematical Social Sciences.
Volume (Year): 61 (2011)
Issue (Month): 2 (March)
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Web page: http://www.elsevier.com/locate/inca/505565
Nonlinearity Hamiltonian Closed form Growth Transitional dynamics;
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