Monotonicity and Continuity of the Critical Capital Stock in the Dechert-Nishimura Model

Ken-Ichi Akao, Takashi Kamihigashi and Kazuo Nishimura

No DP2011-20, Discussion Paper Series from Research Institute for Economics & Business Administration, Kobe University

Abstract: We show that the critical capital stock of the Dechert-Nishimura (1983) model is a decreasing and continuous function of the discount factor. We also show that the critical capital stock merges with a nonzero steady state as the discount factor decreases to a certain boundary value, and that the critical capital stock converges to the minimum sustainable capital stock as the discount factor increases to another boundary value.

Keywords: Dechert-Nishimura model; Nonconvexity; Optimal growth; critical capital stock (search for similar items in EconPapers)
JEL-codes: C61 D90 O41 (search for similar items in EconPapers)
Pages: 19 pages
Date: 2011-04, Revised 2011-09
New Economics Papers: this item is included in nep-dge
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Citations: View citations in EconPapers (20)

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https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2011-20.pdf Revised version, 2011 (application/pdf)

Related works:
Journal Article: Monotonicity and continuity of the critical capital stock in the Dechert–Nishimura model (2011)
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Persistent link: https://EconPapers.repec.org/RePEc:kob:dpaper:dp2011-20

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