A Characterization of the Turnpike Property of Optimal Paths in the Aggregative Model of Intertemporal Allocation
AbstractThe paper provides a complete characterization of the turnpike property of optimal paths in the (reduced form) aggregative model of intertemporal allocation. The characterization allows one to identify precisely the bifurcation point between globally stable and cyclical long-run optimal behavior. The complete characterization result is used to evaluate several sufficient conditions for global asymptotic stability of optimal paths that have been proposed in the literature. It is also used to examine sufficient conditions for the emergence of competitive equilibrium cycles in two-sector models.
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Bibliographic InfoPaper provided by Cornell University, Center for Analytic Economics in its series Working Papers with number 02-17.
Date of creation: Nov 2002
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Other versions of this item:
- Tapan Mitra, 2005. "Characterization of the turnpike property of optimal paths in the aggregative model of intertemporal allocation," International Journal of Economic Theory, The International Society for Economic Theory, vol. 1(4), pages 247-275.
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
- D90 - Microeconomics - - Intertemporal Choice and Growth - - - General
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
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Economics Working Papers (Ensaios Economicos da EPGE)
641, FGV/EPGE Escola Brasileira de Economia e Finanças, Getulio Vargas Foundation (Brazil).
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