Adaptive Rolling Plans Are Good
AbstractHere we prove the goodness property of adaptive rolling plans in a multisector optimal growth model under decreasing returns in deterministic environment. Goodness is achieved as a result of fast convergence (at an asymptotically geometric rate) of the rolling plan to balanced growth path. Further on, while searching for goodness, we give a new proof of strong concavity of an indirect utility function – this result is achieved just with help of some elementary matrix algebra and differential calculus.
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Bibliographic InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 42043.
Date of creation: 2009
Date of revision:
Publication status: Published in Argumenta Oeconomica 2/2010.25(2010): pp. 117-136
indirect utility function; good plans; adaptive rolling-planning; multisector model;
Find related papers by JEL classification:
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
- C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
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