On the non-existence of optimal programs in the Robinson-Solow-Srinivasan (RSS) model
We show that in the 2-sector RSS model, there is no optimal program for any initial stock when the felicity function is linear and the marginal rate [xi] equals unity. This settles a conjecture, unresolved since 2005.
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- M. Ali Khan & Tapan Mitra, 2007. "Optimal Growth In A Two-Sector Rss Model Without Discounting: A Geometric Investigation," The Japanese Economic Review, Japanese Economic Association, vol. 58(2), pages 191-225.
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