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Globally optimal paths in the nonclassical growth model
Journal article   Open access   Peer reviewed

Globally optimal paths in the nonclassical growth model

R. Amir
Computers & mathematics with applications (1987), Vol.18(6), pp.663-674
1989
DOI: 10.1016/0898-1221(89)90116-8
url
https://doi.org/10.1016/0898-1221(89)90116-8View
Published (Version of record) Open Access

Abstract

We consider the nonclassical optimal growth model, consisting of convex preferences and a convex-concave production function. We give necessary and sufficient conditions for a feasible path of one-period consumptions to be globally optimal. In the process, we also characterize locally optimal paths, and present an example which illustrates most points of interest. The analysis is based on an altered dynamic programming approach.

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