Growth in the Robinson-Solow-Srinivasan model: Undiscounted optimal policy with a strictly concave welfare function

B-Tier
Journal: Journal of Mathematical Economics
Year: 2008
Volume: 44
Issue: 7-8
Pages: 707-732

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

In a special case of a model due to Robinson, Solow and Srinivasan, we characterize the optimal policy function (OPF) for undiscounted optimal growth with a strictly concave felicity function. This characterization is based on an equivalence of optimal and minimum value-loss programs that allows an extension of the principal results of dynamic programming. We establish monotonicity properties of the OPF, and obtain sharper characterizations when restrictions on the marginal rate of transformation are supplemented by sufficient conditions on the "degree of concavity" of the felicity function. We show that important similarities and intriguing differences emerge between the linear and strictly concave cases as the marginal rate of transformation moves through its range of possible values.

Technical Details

RePEc Handle
repec:eee:mateco:v:44:y:2008:i:7-8:p:707-732
Journal Field
Theory
Author Count
2
Added to Database
2026-01-25