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Optimal growth models and the Lagrange multiplier

Author

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  • Cuong Le Van

    (CERMSEM - CEntre de Recherche en Mathématiques, Statistique et Économie Mathématique - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)

  • H. Cagri Saglam

    (UCL IRES - Institut de recherches économiques et sociales - UCL - Université Catholique de Louvain = Catholic University of Louvain)

Abstract

We provide sufficient conditions on the objective functional and the constraint functions under which the Lagrangean can be represented by a l1 sequence of multipliers in infinite horizon discrete time optimal growth models

Suggested Citation

  • Cuong Le Van & H. Cagri Saglam, 2004. "Optimal growth models and the Lagrange multiplier," Post-Print halshs-00118996, HAL.
    • Handle: RePEc:hal:journl:halshs-00118996
    DOI: 10.1016/j.jmateco.2003.10.002
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    References listed on IDEAS

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    Cited by:

    1. Goenka, Aditya & Nguyen, Manh-Hung, 2009. "Existence of Competitive Equilibrium in an Optimal Growth Model with Elastic Labor Supply and Smoothness of the Policy Function," TSE Working Papers 09-064, Toulouse School of Economics (TSE).
    2. Goenka, Aditya & Nguyen, Manh-Hung, 2020. "General existence of competitive equilibrium in the growth model with an endogenous labor–leisure choice," Journal of Mathematical Economics, Elsevier, vol. 91(C), pages 90-98.
    3. Cuong Le Van & Manh Hung Nguyen, 2005. "Existence of competitive equilibrium in a single-sector growth model with heterogeneous agents and endogenous leisure," Cahiers de la Maison des Sciences Economiques b05092, Université Panthéon-Sorbonne (Paris 1).
    4. Le Van, Cuong & Schubert, Katheline & Nguyen, Tu Anh, 2010. "With exhaustible resources, can a developing country escape from the poverty trap?," Journal of Economic Theory, Elsevier, vol. 145(6), pages 2435-2447, November.
    5. Aditya Goenka & Cuong Le Van & Manh-Hung Nguyen, 2011. "A study of the dynamic of influence through differential equations," Documents de travail du Centre d'Economie de la Sorbonne 11023, Université Panthéon-Sorbonne (Paris 1), Centre d'Economie de la Sorbonne.
    6. Goenka, Aditya & Le Van, Cuong & Nguyen, Manh-Hung, 2012. "Existence Of Competitive Equilibrium In An Optimal Growth Model With Heterogeneous Agents And Endogenous Leisure," Macroeconomic Dynamics, Cambridge University Press, vol. 16(S1), pages 33-51, April.
    7. Manh-Hung Nguyen & San Nguyen Van, 2005. "The Lagrange multipliers and existence of competitive equilibrium in an intertemporal model with endogenous leisure," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) halshs-00194723, HAL.
    8. Golosov, M. & Tsyvinski, A. & Werquin, N., 2016. "Recursive Contracts and Endogenously Incomplete Markets," Handbook of Macroeconomics, in: J. B. Taylor & Harald Uhlig (ed.), Handbook of Macroeconomics, edition 1, volume 2, chapter 0, pages 725-841, Elsevier.
    9. Hiraguchi, Ryoji, 2011. "A two sector endogenous growth model with habit formation," Journal of Economic Dynamics and Control, Elsevier, vol. 35(4), pages 430-441, April.
    10. Cuong Le Van & Yiannis Vailakis, 2004. "Existence of competitive equilibrium in a single-sector growth model with elastic labour," Cahiers de la Maison des Sciences Economiques b04123, Université Panthéon-Sorbonne (Paris 1).
    11. Goenka, Aditya & Nguyen, Manh-Hung, 2011. "Equilibrium in the growth model with an endogenous labor-leisure choice," LERNA Working Papers 11.06.340, LERNA, University of Toulouse.
    12. Mohamed Ben Ridha Mabrouk, 2011. "Translation invariance when utility streams are infinite and unbounded," International Journal of Economic Theory, The International Society for Economic Theory, vol. 7(4), pages 317-329, December.
    13. Paweł Dziewulski, 2011. "On Time-to-Build Economies with Multiple-Stage Investments," Gospodarka Narodowa. The Polish Journal of Economics, Warsaw School of Economics, issue 9, pages 23-49.
    14. Marrero, Gustavo A., 2008. "Revisiting The Optimal Stationary Public Investment Policy In Endogenous Growth Economies," Macroeconomic Dynamics, Cambridge University Press, vol. 12(2), pages 172-194, April.
    15. Jean-Michel Grandmont, 2013. "Tribute to Cuong Le Van," International Journal of Economic Theory, The International Society for Economic Theory, vol. 9(1), pages 5-10, March.
    16. Mohamed Mabrouk, 2005. "Intergenerational anonymity as an alternative to the discounted- sum criterion in the calculus of optimal growth II: Pareto optimality and some economic interpretations," GE, Growth, Math methods 0511007, University Library of Munich, Germany.
    17. Mohamed Mabrouk, 2005. "Intergenerational anonymity as an alternative to the discounted- sum criterion in the calculus of optimal growth I: Consensual optimality," GE, Growth, Math methods 0510013, University Library of Munich, Germany.
    18. Luis Alcalá & Fernando Tohmé & Carlos Dabús, 2019. "Strategic Growth with Recursive Preferences: Decreasing Marginal Impatience," Dynamic Games and Applications, Springer, vol. 9(2), pages 314-365, June.

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    More about this item

    Keywords

    Optimal growth; Lagrangean multipliers;

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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