Existence of optimal strategies in linear multisector models with several consumption goods

Freni, Giuseppe and Gozzi, Fausto and Salvadori, Neri (2010): Existence of optimal strategies in linear multisector models with several consumption goods.

Abstract

In this paper we give a sufficient and almost necessary condition for the existence of optimal strategies in linear multisector models when time is continuous and the the instantaneous utility function of the representative agent has two properties: (a) the intertemporal elasticity of substitution is constant over time and (b) preferences are concave and homothetic.

• Item Type: MPRA Paper
• Language: English
• Keywords: Endogenous growth; optimal control with mixed constraints; von Neumann growth model
• Subjects: O - Economic Development, Innovation, 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 > C62 - Existence and Stability Conditions of Equilibrium

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