IDEAS home Printed from https://ideas.repec.org/p/cwl/cwldpp/273.html
   My bibliography  Save this paper

Optimal Growth with Scale Economies in Overhead Capital

Author

Listed:
  • Martin L. Weitzman

Abstract

Summary: Following closely the approach to optimal economic growth taken in the work of Frank Ramsey (1928), a highly simplified two-sector model is presented in which the "overhead capital" sector exhibits increasing returns to scale. Basic properties of the optimal growth path are discussed and the optimal policy is explicitly demonstrated for a special case. From an economic standpoint, the model might be relevant in bearing on some issues of development programming. Mathematically, this kind of a model has an interesting structure because it is a combination of convex and concave sub-problems.

Suggested Citation

  • Martin L. Weitzman, 1969. "Optimal Growth with Scale Economies in Overhead Capital," Cowles Foundation Discussion Papers 273, Cowles Foundation for Research in Economics, Yale University.
    • Handle: RePEc:cwl:cwldpp:273
    Note: CFP 334.
    as

    Download full text from publisher

    File URL: https://cowles.yale.edu/sites/default/files/files/pub/d02/d0273.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Frederick T. Moore, 1959. "Economies of Scale: Some Statistical Evidence," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 73(2), pages 232-245.
    2. Tjalling C. Koopmans, 1963. "On the Concept of Optimal Economic Growth," Cowles Foundation Discussion Papers 163, Cowles Foundation for Research in Economics, Yale University.
    3. D. McFadden, 1967. "The Evaluation of Development Programmes," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 34(1), pages 25-50.
    4. John Haldi & David Whitcomb, 1967. "Economies of Scale in Industrial Plants," Journal of Political Economy, University of Chicago Press, vol. 75(4), pages 373-373.
    5. K. J. Arrow, 1971. "The Economic Implications of Learning by Doing," Palgrave Macmillan Books, in: F. H. Hahn (ed.), Readings in the Theory of Growth, chapter 11, pages 131-149, Palgrave Macmillan.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Michalis Nikiforos, 2013. "The (Normal) Rate of Capacity Utilization at the Firm Level," Metroeconomica, Wiley Blackwell, vol. 64(3), pages 513-538, July.
    2. ?gel de la Fuente, "undated". "Convergence Across Countries And Regions: Theory And Empirics," UFAE and IAE Working Papers 447.00, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
    3. Jun, Bogang & Kim, Tai-Yoo, 2015. "A neo-Schumpeterian perspective on the analytical macroeconomic framework: The expanded reproduction system," Hohenheim Discussion Papers in Business, Economics and Social Sciences 11-2015, University of Hohenheim, Faculty of Business, Economics and Social Sciences.
    4. Barro, Robert J, 1990. "Government Spending in a Simple Model of Endogenous Growth," Journal of Political Economy, University of Chicago Press, vol. 98(5), pages 103-126, October.
    5. Jaume Ventura & Francesco Caselli, 2000. "A Representative Consumer Theory of Distribution," American Economic Review, American Economic Association, vol. 90(4), pages 909-926, September.
    6. repec:ebl:ecbull:v:2:y:2002:i:1:p:1-15 is not listed on IDEAS
    7. Abdiweli Ali, 2003. "Institutional differences as sources of growth differences," Atlantic Economic Journal, Springer;International Atlantic Economic Society, vol. 31(4), pages 348-362, December.
    8. Gomes, Orlando, 2007. "Externalities in R&D: a route to endogenous fluctuations," MPRA Paper 2850, University Library of Munich, Germany.
    9. Robert J. Barro & Xavier Sala-I-Martin, 1992. "Public Finance in Models of Economic Growth," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 59(4), pages 645-661.
    10. Nolan, Tahlia, 2024. "Is pivoting offshore the right policy for achieving decarbonisation in the state of Victoria, Australia's electricity sector?," Energy Policy, Elsevier, vol. 190(C).
    11. McKenzie, L., 1999. "The First Conferences on the Theory of Economic Growth," RCER Working Papers 459, University of Rochester - Center for Economic Research (RCER).
    12. Aykut Kibritçioglu, 2002. "On the Smithian origins of "new" trade and growth theories," Economics Bulletin, AccessEcon, vol. 2(1), pages 1-15.
    13. Graciela Chichilnisky, 1996. "An axiomatic approach to sustainable development," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 13(2), pages 231-257, April.
    14. Roberto Ezcurra, 2001. "Convergencia Y Cambio Estructural En La Unión Europea," Documentos de Trabajo - Lan Gaiak Departamento de Economía - Universidad Pública de Navarra 0111, Departamento de Economía - Universidad Pública de Navarra.
    15. Rappaport, Jordan, 2006. "A bottleneck capital model of development," Journal of Monetary Economics, Elsevier, vol. 53(8), pages 2113-2129, November.
    16. Ben S. Bernanke & Refet S. Gürkaynak, 2002. "Is Growth Exogenous? Taking Mankiw, Romer, and Weil Seriously," NBER Chapters, in: NBER Macroeconomics Annual 2001, Volume 16, pages 11-72, National Bureau of Economic Research, Inc.
    17. Rao, B. Bhaskara & Cooray, Arusha, 2010. "Determinants of the long-run growth rate in the South-Asian countries," MPRA Paper 26493, University Library of Munich, Germany.
    18. Stokey, Nancy L, 1988. "Learning by Doing and the Introduction of New Goods," Journal of Political Economy, University of Chicago Press, vol. 96(4), pages 701-717, August.
    19. Mauler, Lukas & Duffner, Fabian & Leker, Jens, 2021. "Economies of scale in battery cell manufacturing: The impact of material and process innovations," Applied Energy, Elsevier, vol. 286(C).
    20. Gregory Nemet & Erin Baker & Bob Barron & Samuel Harms, 2015. "Characterizing the effects of policy instruments on the future costs of carbon capture for coal power plants," Climatic Change, Springer, vol. 133(2), pages 155-168, November.
    21. Krzysztof Cichy, 2009. "Human Capital and Technological Progress as the Determinants of Economic Growth," NBP Working Papers 60, Narodowy Bank Polski.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cwl:cwldpp:273. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Brittany Ladd (email available below). General contact details of provider: https://edirc.repec.org/data/cowleus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.