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On a uniform turnpike of the third kind in the Robinson-Solow-Srinivasan model

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  • Khan, Ali
  • Zaslavski, Alexander J.

Abstract

On using McKenzie’s taxonomy of optimal accumulation in the longrun, we report a 'uniform turnpike' theorem of the third kind in a model original to Robinson, Solow and Srinivasan (RSS), and further studied by Stiglitz. Our results are presented in the undiscounted, discrete-time setting emphasized in the recent work of Khan-Mitra, and they rely on the importance of strictly concave felicity functions, or alternatively, on the value of a 'marginal rate of transformation', ξσ, from one period to the next not being unity. Our results, despite their specificity, contribute to the methodology of intertemporal optimization theory, as developed in economics by Ramsey, von Neumann and their followers.

Suggested Citation

  • Khan, Ali & Zaslavski, Alexander J., 2007. "On a uniform turnpike of the third kind in the Robinson-Solow-Srinivasan model," FGV EPGE Economics Working Papers (Ensaios Economicos da EPGE) 641, EPGE Brazilian School of Economics and Finance - FGV EPGE (Brazil).
    • Handle: RePEc:fgv:epgewp:641
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    References listed on IDEAS

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    2. M. Ali Khan & Tapan Mitra, 2007. "Optimal Growth In A Two‐Sector Rss Model Without Discounting: A Geometric Investigation," The Japanese Economic Review, Japanese Economic Association, vol. 58(2), pages 191-225, June.
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    Cited by:

    1. Khan, M. Ali & Zaslavski, Alexander J., 2009. "On existence of optimal programs: The RSS model without concavity assumptions on felicities," Journal of Mathematical Economics, Elsevier, vol. 45(9-10), pages 624-633, September.
    2. Khan, M. Ali & Piazza, Adriana, 2010. "On the non-existence of optimal programs in the Robinson-Solow-Srinivasan (RSS) model," Economics Letters, Elsevier, vol. 109(2), pages 94-98, November.

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    JEL classification:

    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • C62 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Existence and Stability Conditions of Equilibrium
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy

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