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

Cuong Le Van () and Lisa Morhaim
Additional contact information
Cuong Le Van: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique
Lisa Morhaim: CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique

Post-Print from HAL

Abstract: The aim of this paper is to fill the gap between intertemporal growth models when the discount factor beta 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 and the initial stock of capitalx0. We prove that the optimal policy g(x0) is differentiable and that Dg(x0) is continuous with respect to (beta, x0). As a by-product, a globalturnpike result is proved.

Keywords: Optimal growth; discount factor; value function; policy function; differentiability; turnpike.; turnpike (search for similar items in EconPapers)
Date: 2006-03
Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-00096034
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

Published in International Journal of Economic Theory, 2006, 2 (1), pp.55-76. ⟨10.1111/j.1365-2966.2006.0024.x⟩

Downloads: (external link)
https://shs.hal.science/halshs-00096034/document (application/pdf)

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:hal:journl:halshs-00096034

DOI: 10.1111/j.1365-2966.2006.0024.x

Access Statistics for this paper

More papers in Post-Print from HAL
Bibliographic data for series maintained by CCSD ().