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A Robust Turnpike Deduced by Economic Maturity

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  • Dai, Darong

Abstract

In the paper, a one-sector neoclassical model with stochastic growth has been constructed. The key concept of economic maturity is well-defined in the abstract model economy, and also a thorough characterization of the minimum time needed to economic maturity is supplied for the first time. Moreover, it is confirmed that the capital-labor ratio corresponding to the state of economic maturity indeed provides us with a robust turnpike of the optimal path of capital accumulation.

Suggested Citation

  • Dai, Darong, 2012. "A Robust Turnpike Deduced by Economic Maturity," MPRA Paper 48818, University Library of Munich, Germany.
  • Handle: RePEc:pra:mprapa:48818
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    File URL: https://mpra.ub.uni-muenchen.de/48818/1/MPRA_paper_48818.pdf
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    References listed on IDEAS

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    1. Frank Riedel, 2009. "Optimal Stopping With Multiple Priors," Econometrica, Econometric Society, vol. 77(3), pages 857-908, May.
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    More about this item

    Keywords

    Stochastic growth; Economic maturity; Asymptotic turnpike theorem; Neighborhood turnpike theorem; Robustness.;

    JEL classification:

    • C60 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - General
    • E13 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Neoclassical
    • E22 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Investment; Capital; Intangible Capital; Capacity

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