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Optimal steady state of an economic dynamics model with a nonconcave production function

Author

Listed:
  • Ken-Ichi Akao

    (School of Social Sciences, Waseda University, 1-6-1 Nishiwaseda Shinjuku Tokyo, 169-8050, Japan.)

  • Takashi Kamihigashi

    (Research Institute for Economics and Business Administration, Kobe University, Japan.)

  • Kazuo Nishimura

    (Institute of Economic Research, Kyoto University, Japan)

Abstract

In a nonconcave economic dynamics model, an open question is the optimality of a steady state of the canonical system of Hamiltonian differential equations in the convex part of the production function. We demonstrate that it can be an optimal steady state.

Suggested Citation

  • Ken-Ichi Akao & Takashi Kamihigashi & Kazuo Nishimura, 2019. "Optimal steady state of an economic dynamics model with a nonconcave production function," RIEEM Discussion Paper Series 1907, Research Institute for Environmental Economics and Management, Waseda University.
    • Handle: RePEc:was:dpaper:1907
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    References listed on IDEAS

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    1. repec:tiu:tiutis:e656c1f0-c869-4ee6-b49b-247830a75965 is not listed on IDEAS
    2. W. Davis Dechert & Kazuo Nishimura, 2012. "A Complete Characterization of Optimal Growth Paths in an Aggregated Model with a Non-Concave Production Function," Springer Books, in: John Stachurski & Alain Venditti & Makoto Yano (ed.), Nonlinear Dynamics in Equilibrium Models, edition 127, chapter 0, pages 237-257, Springer.
    3. Askenazy, Philippe & Le Van, Cuong, 1999. "A Model of Optimal Growth Strategy," Journal of Economic Theory, Elsevier, vol. 85(1), pages 24-51, March.
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    5. Skiba, A K, 1978. "Optimal Growth with a Convex-Concave Production Function," Econometrica, Econometric Society, vol. 46(3), pages 527-539, May.
    6. Ken-Ichi Akao & Takashi Kamihigashi & Kazuo Nishimura, 2015. "Critical Capital Stock in a Continuous-Time Growth Model with a Convex-Concave Production Function," Discussion Paper Series DP2015-39, Research Institute for Economics & Business Administration, Kobe University.
    7. Haunschmied, Josef L. & Feichtinger, Gustav & Hartl, Richard F. & Kort, Peter M., 2005. "Keeping up with the technology pace: A DNS-curve and a limit cycle in a technology investment decision problem," Journal of Economic Behavior & Organization, Elsevier, vol. 57(4), pages 509-529, August.
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    9. Partha Dasgupta & Karl-Göran Mäler, 2003. "The Economics of Non-Convex Ecosystems: Introduction," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 26(4), pages 499-525, December.
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    Cited by:

    1. Ken-Ichi Akao & Hitoshi Ishii & Takashi Kamihigashi & Kazuo Nishimura, 2019. "Existence of an optimal path in a continuous-time nonconcave Ramsey model," RIEEM Discussion Paper Series 1905, Research Institute for Environmental Economics and Management, Waseda University.
    2. Ken-Ichi Akao & Takashi Kamihigashi & Kazuo Nishimura, 2015. "Critical Capital Stock in a Continuous-Time Growth Model with a Convex-Concave Production Function," Discussion Paper Series DP2015-39, Research Institute for Economics & Business Administration, Kobe University.

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    More about this item

    Keywords

    Economic dynamic model; Convex-concave production function; Optimal steady state;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • D90 - Microeconomics - - Micro-Based Behavioral Economics - - - General
    • O41 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models

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