Logo
Munich Personal RePEc Archive

Time as an Endogenous Random Variable Smoothly Embedded into Preference Manifold

Dai, Darong (2011): Time as an Endogenous Random Variable Smoothly Embedded into Preference Manifold.

[thumbnail of MPRA_paper_40182.pdf]
Preview
PDF
MPRA_paper_40182.pdf

Download (399kB) | Preview

Abstract

A general equilibrium model has been constructed in a stochastic endogenous growth economy driven by an Ito-Levy diffusion process. The minimum time to “economic maturity” for an underdeveloped economy has been computed both in the preference manifold of the modified Ramsey fashion and in that of the modified Radner fashion with its support, i.e., fiscal policies and savings strategy, endogenously determined. Furthermore, the effects of different information structures to the endogenous time have been thoroughly investigated, and local sensitivity analyses of optimal consumption per capita with respect to the initial level of capital stock per capita have been smoothly incorporated into the current macroeconomic model.

Atom RSS 1.0 RSS 2.0

Contact us: mpra@ub.uni-muenchen.de

This repository has been built using EPrints software.

MPRA is a RePEc service hosted by Logo of the University Library LMU Munich.