Accumulation and Compensation Turnpikes in a Liontief Model
The paper considers a model of an economy with after effects: any production activity generates some subsequent expenses, like compensation of residual damages. Internalizing the after effects in production costs at the time they are generated proves to substantially change the shape of long-term programs. It results from an interaction of two components corresponding to the conflicting goals: the fastest growth of production and the most rapid decrease of residual damages. Each component has its own turnpike so that the model has two dynamic equilibria. Respectively, shadow prices are a combination of two components: "accumulation prices" declining over time, and "compensation prices" that are growing. In some cases this may result in negative market interest rates.
(This abstract was borrowed from another version of this item.)
To our knowledge, this item is not available for
download. To find whether it is available, there are three
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page whether it is in fact available.
3. Perform a search for a similarly titled item that would be available.
|Date of creation:||1992|
|Contact details of provider:|| Postal: Indiana University, Center for Econometric Model Research, Department of Economics; Bloomington, IN 47405.|
Web page: http://www.indiana.edu/~econweb/
More information through EDIRC
When requesting a correction, please mention this item's handle: RePEc:fth:indian:92-014. See general information about how to correct material in RePEc.
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.