Dynamic Optimization with a Non-Convex Technology: The Case of a Linear Objective Function

Mukul Majumdar and Tapan Mitra

The Review of Economic Studies, 1983, vol. 50, issue 1, 143-151

Abstract: The paper studies the problem of optimal intertemporal allocation in an aggregative model with a non-convex technology set and a discounted sum of consumptions as the objective function. The study demonstrates the existence of a threshold initial stock such that the long-run behaviour of optimal programmes depends critically on whether the initial stock is, above or below the threshold. This is in contrast with the standard turnpike theory of convex models in which the long-run behaviour of optimal programmes is independent of the initial stock.

Date: 1983
References: Add references at CitEc
Citations: View citations in EconPapers (28)

Downloads: (external link)
http://hdl.handle.net/10.2307/2296961 (application/pdf)
Access to full text is restricted to subscribers.

Related works:
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:oup:restud:v:50:y:1983:i:1:p:143-151.

Access Statistics for this article

The Review of Economic Studies is currently edited by Thomas Chaney, Xavier d’Haultfoeuille, Andrea Galeotti, Bård Harstad, Nir Jaimovich, Katrine Loken, Elias Papaioannou, Vincent Sterk and Noam Yuchtman

More articles in The Review of Economic Studies from Review of Economic Studies Ltd
Bibliographic data for series maintained by Oxford University Press ().