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A Robust Turnpike Deduced by Economic Maturity

Dai, Darong (2012): A Robust Turnpike Deduced by Economic Maturity.

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Abstract

In the paper, a one-sector neoclassical model with stochastic growth has been constructed. The key concept of economic maturity is well-defined in the abstract model economy, and also a thorough characterization of the minimum time needed to economic maturity is supplied for the first time. Moreover, it is confirmed that the capital-labor ratio corresponding to the state of economic maturity indeed provides us with a robust turnpike of the optimal path of capital accumulation.

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