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Steady-state properties in a class of dynamic models

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  • Tsur, Yacov
  • Zemel, Amos

Abstract

We characterize the location, stability and approach-time of optimal steady states in single-state, infinite-horizon, autonomous models by means of a simple function of the state variable, defined in terms of the model's primitives. The method does not require the solution of the underlying dynamic optimization problem. Its application is illustrated in the context of a generic class of resource management problems.

Suggested Citation

  • Tsur, Yacov & Zemel, Amos, 2014. "Steady-state properties in a class of dynamic models," Journal of Economic Dynamics and Control, Elsevier, vol. 39(C), pages 165-177.
    • Handle: RePEc:eee:dyncon:v:39:y:2014:i:c:p:165-177
    DOI: 10.1016/j.jedc.2013.11.009
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    References listed on IDEAS

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    Cited by:

    1. Raveh, Ohad & Tsur, Yacov, 2020. "Resource windfalls and public debt: A political economy perspective," European Economic Review, Elsevier, vol. 123(C).
    2. Yacov Tsur & Amos Zemel, 2017. "Steady state properties of multi-state economic models," Canadian Journal of Economics, Canadian Economics Association, vol. 50(2), pages 506-521, May.
    3. Tsur, Yacov, 2020. "Optimal water pricing: Accounting for environmental externalities," Ecological Economics, Elsevier, vol. 170(C).
    4. Yacov Tsur & Amos Zemel, 2017. "Water policy guidelines: A comprehensive approach," Discussion Papers 264871, Hebrew University of Jerusalem, Department of Agricultural Economics and Management.
    5. Raveh, Ohad & Tsur, Yacov, 2020. "Reelection, growth and public debt," European Journal of Political Economy, Elsevier, vol. 63(C).
    6. Ohad Raveh & Yacov Tsur, 2017. "Political Myopia, Public Debt," OxCarre Working Papers 200, Oxford Centre for the Analysis of Resource Rich Economies, University of Oxford.

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    More about this item

    Keywords

    Infinite horizon; Autonomous problems; Optimal policy; Steady-state; Approach time;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • Q20 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation - - - General
    • Q30 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation - - - General

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