We report an example of a two-dimensional undiscounted convex optimal growth model in continuous time in which, although there is a unique “golden rule”, no overtaking optimal solutions exists in a full neighbourhood of the steady state. The example confirms a conjecture advanced in 1976 that the minimum dimension for non-existence of overtaking optimal programs in continuous time is 2.

Non-existence of Optimal Programs in Continuous Time: an extended version

FAGGIAN, Silvia;
2015-01-01

Abstract

We report an example of a two-dimensional undiscounted convex optimal growth model in continuous time in which, although there is a unique “golden rule”, no overtaking optimal solutions exists in a full neighbourhood of the steady state. The example confirms a conjecture advanced in 1976 that the minimum dimension for non-existence of overtaking optimal programs in continuous time is 2.
2015
Working Papers from Department of Economics, University of Venice "Ca' Foscari" 2016
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10278/3677452
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