Adaptive Rolling Plans Are Good
Here we prove the goodness property of adaptive rolling plans in a multisector optimal growth model under decreasing returns in deterministic environment. Goodness is achieved as a result of fast convergence (at an asymptotically geometric rate) of the rolling plan to balanced growth path. Further on, while searching for goodness, we give a new proof of strong concavity of an indirect utility function – this result is achieved just with help of some elementary matrix algebra and differential calculus.
|Date of creation:||2009|
|Date of revision:|
|Publication status:||Published in Argumenta Oeconomica 2/2010.25(2010): pp. 117-136|
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