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.
Download InfoIf 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.
Bibliographic InfoPaper provided by Arizona State University, Department of Economics in its series Working Papers with number 97/9.
Date of creation:
Date of revision:
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 - - - General
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
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.:
- Mirman, Leonard J. & Zilcha, Itzhak, 1975. "On optimal growth under uncertainty," Journal of Economic Theory, Elsevier, vol. 11(3), pages 329-339, December.
- Goldin,Ian & Winters,L. Alan (ed.), 1992. "Open Economies," Cambridge Books, Cambridge University Press, number 9780521420563, December.
- 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, vol. 31(2), pages 332-354, December.
- Brock, William A. & Mirman, Leonard J., 1972. "Optimal economic growth and uncertainty: The discounted case," Journal of Economic Theory, Elsevier, vol. 4(3), pages 479-513, June.
- Chatterjee, Partha & Shukayev, Malik, 2012.
"A stochastic dynamic model of trade and growth: Convergence and diversification,"
Journal of Economic Dynamics and Control,
Elsevier, vol. 36(3), pages 416-432.
- Partha Chatterjee & Malik Shukayev, 2013. "A Stochastic Dynamic Model of Trade and Growth: Convergence and Diversi?cation," Working Papers 07, Development and Policies Research Center (DEPOCEN), Vietnam.
- Partha Chatterjee & Malik Shukayev, 2008. "A Stochastic Dynamic Model of Trade and Growth: Convergence and Diversification," DEGIT Conference Papers c013_034, DEGIT, Dynamics, Economic Growth, and International Trade.
- Olson, Lars J. & Roy, Santanu, 2005. "Theory of Stochastic Optimal Economic Growth," Working Papers 28601, University of Maryland, Department of Agricultural and Resource Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Thomas Krichel).
If references are entirely missing, you can add them using this form.