Non-existence of optimal programs for undiscounted growth models in continuous time

Giorgio Fabbri, Silvia Faggian and Giuseppe Freni

Economics Letters, 2017, vol. 152, issue C, 57-61

Abstract: We report an example of a two-dimensional undiscounted convex optimal growth model in continuous time in which, although there is a unique “golden rule”, no overtaking optimal solutions exists in a full neighborhood of the steady state. The example proves, for optimal growth models, a conjecture advanced in 1976 by Brock and Haurie that the minimum dimension for non-existence of overtaking optimal programs in continuous time is 2.

Keywords: Optimal growth; Overtaking; Continuous time models (search for similar items in EconPapers)
JEL-codes: C61 D90 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0165176516305316
Full text for ScienceDirect subscribers only

Related works:
Working Paper: Non-existence of optimal programs for undiscounted growth models in continuous time (2017)
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:eee:ecolet:v:152:y:2017:i:c:p:57-61

DOI: 10.1016/j.econlet.2016.12.022

Access Statistics for this article

Economics Letters is currently edited by Economics Letters Editorial Office

More articles in Economics Letters from Elsevier
Bibliographic data for series maintained by Catherine Liu ().