On choice of technique in the Robinson–Solow–Srinivasan model

M. Khan and Tapan Mitra

International Journal of Economic Theory, 2005, vol. 1, issue 2, 83-110

Abstract: We report results on the optimal “choice of technique” in a model originally formulated by Robinson, Solow and Srinivasan. By viewing this model as a specific instance of the general theory of intertemporal resource allocation associated with Brock, Gale and McKenzie, we resolve long‐standing conjectures in the form of theorems on the existence and price‐support of optimal paths, and on their long‐run behavior. We also examine policies, due to Stiglitz, as a cornerstone for a theory of transition dynamics in this model. We present examples to show that: (i) an optimal program can be periodic; (ii) a Stiglitz' program can be bad; and (iii) a Stiglitz production program can be non‐optimal. We then provide sufficient conditions under which the policies proposed by Stiglitz coincide with optimal behavior.

Date: 2005
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Citations: View citations in EconPapers (17)

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https://doi.org/10.1111/j.1742-7363.2005.00007.x

Related works:
Working Paper: On Choice of Technique in the Robinson-Solow-Srinivasan Model (2004)
Working Paper: On choice of technique in the Robinson-Solow-Srinivasan model (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:bla:ijethy:v:1:y:2005:i:2:p:83-110

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