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Suppes–Sen maximality of cyclical consumption: The neoclassical growth model

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  • Banerjee, Kuntal

Abstract

In this paper we demonstrate the existence of cyclical consumption that are maximal according to the Suppes–Sen grading principle for the Aggregative Growth Model. The paper demonstrates the optimality of cyclical consumption paths in the absence of discounting for the smooth neoclassical growth model. The process of this verification allows us to develop the theory of weakly maximal paths for a non-concave and discontinuous utility function extending previous results from Optimal Growth Theory.

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  • Banerjee, Kuntal, 2017. "Suppes–Sen maximality of cyclical consumption: The neoclassical growth model," Journal of Mathematical Economics, Elsevier, vol. 70(C), pages 51-65.
    • Handle: RePEc:eee:mateco:v:70:y:2017:i:c:p:51-65
    DOI: 10.1016/j.jmateco.2017.01.005
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