Non-existence of optimal programs for undiscounted growth models in continuous time
We report an example of a two-dimensional undiscounted convex optimal growth model in continuous time in which, although there is a unique “golden rule”, no overtaking optimal solutions exists in a full neighborhood of the steady state. The example proves, for optimal growth models, a conjecture advanced in 1976 by Brock and Haurie that the minimum dimension for non-existence of overtaking optimal programs in continuous time is 2.
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- Khan, M. Ali & Piazza, Adriana, 2010. "On the non-existence of optimal programs in the Robinson-Solow-Srinivasan (RSS) model," Economics Letters, Elsevier, vol. 109(2), pages 94-98, November.
- Fabbri, Giorgio & Faggian, Silvia & Freni, Giuseppe, 2015.
"On the Mitra–Wan forest management problem in continuous time,"
Journal of Economic Theory,
Elsevier, vol. 157(C), pages 1001-1040.
- Silvia Faggian & Giorgio Fabbri & Giuseppe Freni, 2013. "On the Mitra--Wan Forest Management Problem in Continuous Time," Working Papers 2013:28, Department of Economics, University of Venice "Ca' Foscari".
- Giorgio FABBRI & Silvia FAGGIAN & Giuseppe FRENI, 2014. "On the Mitra-Wan Forest Management Problem in Continuous Time," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2014011, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
- Giorgio Fabbri & Silvia Faggian & Giuseppe Freni, 2014. "On The Mitra-Wan Forest Management Problem in Continuous Time," Documents de recherche 14-04, Centre d'Études des Politiques Économiques (EPEE), Université d'Evry Val d'Essonne.
- W. A. Brock & A. Haurie, 1976. "On Existence of Overtaking Optimal Trajectories Over an Infinite Time Horizon," Mathematics of Operations Research, INFORMS, vol. 1(4), pages 337-346, November.
- David Gale, 1967. "On Optimal Development in a Multi-Sector Economy," Review of Economic Studies, Oxford University Press, vol. 34(1), pages 1-18.
- Arie Leizarowitz, 1985. "Existence of Overtaking Optimal Trajectories for Problems with Convex Integrands," Mathematics of Operations Research, INFORMS, vol. 10(3), pages 450-461, August.
- Peleg, Bezalel, 1973. "A Weakly Maximal Golden-Rule Program for a Multi-Sector Economy," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 14(3), pages 574-579, October.
- W. A. Brock, 1970. "On Existence of Weakly Maximal Programmes in a Multi-Sector Economy," Review of Economic Studies, Oxford University Press, vol. 37(2), pages 275-280. Full references (including those not matched with items on IDEAS)
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