Maćkowiak, Piotr (2009): Adaptive Rolling Plans Are Good. Published in: Argumenta Oeconomica , Vol. 25, No. 2/2010 (2010): pp. 117-136.
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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.
|Item Type:||MPRA Paper|
|Original Title:||Adaptive Rolling Plans Are Good|
|Keywords:||indirect utility function; good plans; adaptive rolling-planning; multisector model|
|Subjects:||O - Economic Development, Technological Change, and Growth > O4 - Economic Growth and Aggregate Productivity > O41 - One, Two, and Multisector Growth Models
C - Mathematical and Quantitative Methods > C6 - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling > C61 - Optimization Techniques; Programming Models; Dynamic Analysis
|Depositing User:||Piotr Maćkowiak|
|Date Deposited:||18. Oct 2012 14:57|
|Last Modified:||22. Feb 2013 13:19|
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