Adaptive Rolling Plans Are Good

Piotr Maćkowiak

MPRA Paper from University Library of Munich, Germany

Abstract: Here we prove the goodness property of adaptive rolling plans in a multisector optimal growth model under decreasing returns in deterministic environment. Goodness is achieved as a result of fast convergence (at an asymptotically geometric rate) of the rolling plan to balanced growth path. Further on, while searching for goodness, we give a new proof of strong concavity of an indirect utility function – this result is achieved just with help of some elementary matrix algebra and differential calculus.

Keywords: indirect utility function; good plans; adaptive rolling-planning; multisector model (search for similar items in EconPapers)
JEL-codes: C61 O41 (search for similar items in EconPapers)
Date: 2009
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Published in Argumenta Oeconomica 2/2010.25(2010): pp. 117-136

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