IDEAS home Printed from https://ideas.repec.org/h/spr/sptchp/978-3-642-54950-2_3.html
   My bibliography  Save this book chapter

Optimal Growth: Continuous Time Analysis

In: Economic Growth

Author

Listed:
  • Alfonso Novales

    (Complutense University of Madrid)

  • Esther Fernández

    (Complutense University of Madrid)

  • Jesús Ruiz

    (Complutense University of Madrid)

Abstract

Maintaining the same structure of the neoclassical growth model of Solow and Swan we have reviewed in the previous chapter, Cass [2] and Koopmans [3] characterized the optimal rate of capital accumulation in order to maximize some social welfare criterion. That amounts to specifying the optimal distribution of output between consumption and savings each period, taking into account the fact that savings decisions provide resources for gross investment, thereby conditioning future production possibilities and growth. We are still in a one-good economy, where the single commodity is produced and can either be consumed or used as an input for future production. The stock of the commodity being used in production is physical capital, which is not reversible. It is subject to some constant rate of depreciation, δ, but it cannot be converted back into consumption.

Suggested Citation

  • Alfonso Novales & Esther Fernández & Jesús Ruiz, 2014. "Optimal Growth: Continuous Time Analysis," Springer Texts in Business and Economics, in: Economic Growth, edition 2, chapter 0, pages 105-160, Springer.
    • Handle: RePEc:spr:sptchp:978-3-642-54950-2_3
    DOI: 10.1007/978-3-642-54950-2_3
    as

    Download full text from publisher

    To our knowledge, this item is not available for download. To find whether it is available, there are three options:
    1. Check below whether another version of this item is available online.
    2. Check on the provider's web page whether it is in fact available.
    3. Perform a search for a similarly titled item that would be available.

    Other versions of this item:

    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:spr:sptchp:978-3-642-54950-2_3. 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: Sonal Shukla or Springer Nature Abstracting and Indexing (email available below). General contact details of provider: http://www.springer.com .

    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.