Optimal Accumulation in a Small Open Economy With Technological Uncertainty
AbstractThis paper analyzes the optimal allocation problem of a small country facing an uncertain technology and trading. It is involved in production of many commodities. Differentiability cannot be guaranteed, hence, the Ramsey-Euler condition of optimality needs to be modified. From the optimality criterion, we derive a pair of conditions, which does not require differentiability. If "enough" uncertainty is allowed, the sequence of the distribution functions of investment expenditure converges uniformly to a unique invariant measure.
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Bibliographic InfoPaper provided by Arizona State University, Department of Economics in its series Working Papers with number 97/9.
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Other versions of this item:
- Manjira Datta, 1999. "Optimal accumulation in a small open economy with technological uncertainty," Economic Theory, Springer, vol. 13(1), pages 207-219.
- Manjira Datta, . "Optimal Accumulation in a Small Open Economy with Technological Uncertainty," Working Papers 2132840, Department of Economics, W. P. Carey School of Business, Arizona State University.
- 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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