On Choice of Technique in the Robinson-Solow-Srinivasan Model

M. Khan and Tapan Mitra

Working Papers from Cornell University, Center for Analytic Economics

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.

JEL-codes: C62 D90 O21 (search for similar items in EconPapers)
Date: 2004-07
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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https://cae.economics.cornell.edu/04-13.pdf

Related works:
Journal Article: On choice of technique in the Robinson–Solow–Srinivasan model (2005)
Working Paper: On choice of technique in the Robinson-Solow-Srinivasan model (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:ecl:corcae:04-13

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