IDEAS home Printed from https://ideas.repec.org/a/wly/apsmbi/v34y2018i5p746-755.html
   My bibliography  Save this article

Optimal consumption analysis for a stochastic growth model with technological shocks

Author

Listed:
  • Weipeng Yuan
  • Shaoyong Lai
  • Hanlei Hu

Abstract

An optimal consumption problem of maximizing the expected discounted value of utility is discussed for an economic growth model with the random technological shocks. Applying the technique of dynamic programming principle, we derive the Hamilton‐Jacobi‐Bellman equation corresponding to the optimization problem and prove that the value function is a unique viscosity solution to the equation. Moreover, the optimal consumption policy is given in a feedback form under weak assumptions.

Suggested Citation

  • Weipeng Yuan & Shaoyong Lai & Hanlei Hu, 2018. "Optimal consumption analysis for a stochastic growth model with technological shocks," Applied Stochastic Models in Business and Industry, John Wiley & Sons, vol. 34(5), pages 746-755, September.
    • Handle: RePEc:wly:apsmbi:v:34:y:2018:i:5:p:746-755
    DOI: 10.1002/asmb.2384
    as

    Download full text from publisher

    File URL: https://doi.org/10.1002/asmb.2384
    Download Restriction: no
    File URL: https://libkey.io/10.1002/asmb.2384?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Motoh Tsujimura & Hidekazu Yoshioka, 2023. "A robust consumption model when the intensity of technological progress is ambiguous," Mathematics and Financial Economics, Springer, volume 17, number 2, March.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:apsmbi:v:34:y:2018:i:5:p:746-755. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://doi.org/10.1002/(ISSN)1526-4025 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.