On optimal growth models when the discount factor is near 1 or equal to 1

Cuong Le van and Lisa Morhaim

International Journal of Economic Theory, 2006, vol. 2, issue 1, 55-76

Abstract: The aim of this paper is to fill the gap between intertemporal growth models when the discount factor is close to one and when it equals one. We show that the value function and the policy function are continuous with respect both to the discount factor, β, and the initial stock of capital, x0. We prove that the optimal policy gβ(x0) is differentiable and that Dgβ(x0) is continuous with respect to (β, x0). As a by‐product, a global turnpike result is proved.

Date: 2006
References: View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Downloads: (external link)
https://doi.org/10.1111/j.1365-2966.2006.0024.x

Related works:
Working Paper: On optimal growth models when the discount factor is near 1 or equal to 1 (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:ijethy:v:2:y:2006:i:1:p:55-76

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=1742-7355

Access Statistics for this article

International Journal of Economic Theory is currently edited by Kazuo Nishimura and Makoto Yano

More articles in International Journal of Economic Theory from The International Society for Economic Theory
Bibliographic data for series maintained by Wiley Content Delivery ().