Periodic and Chaotic Programs of Optimal Intertemporal Allocation in an Aggregative Model with Wealth Effects.

B-Tier
Journal: Economic Theory
Year: 1994
Volume: 4
Issue: 5
Pages: 649-76

Authors (2)

Majumdar, Mukul (not in RePEc) Mitra, Tapan

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We examine a discrete-time aggregative model of discounted dynamic optimization where the felicity function depends on both consumption and capital stock. The need for studying such models has been stressed in the theory of optimal growth and also in the economics of natural resources. We identify conditions under which the optimal program is monotone. In our framework, the optimal program can exhibit cyclic behavior for all discount factors close to one. We also present an example to show that our model can exhibit optimal behavior which is chaotic in both topological and ergodic senses.

Technical Details

RePEc Handle
repec:spr:joecth:v:4:y:1994:i:5:p:649-76
Journal Field
Theory
Author Count
2
Added to Database
2026-01-26