Abstract
The convexity of technology has played a crucial role in economic analyses of optimal one-sector growth problems. For example, two of the key results on the traditional model of Ramsey (1928) that have relied on the convexity of the technology are that optimal intertemporal growth involves moving monotonically towards a unique steady state (as in Cass 1965; Koopmans 1965), and that the value function is a concave differentiable function of the initial capital stock (as in Benveniste and Scheinkman 1979).
Journal of Economic Theory 31, 332–354, 1983
We wish to thank Professor W. A. Brock for calling our attention to the topic discussed in this paper. We thank Professors W. A. Brock, David Cass and especially Tapan Mitra for many helpful conversations and comments about the problem. We have also benefitted greatly from the comments of the referee and the assistance of Mr. Kenji Yamamoto in preparing this draft. An earlier version of the paper was presented at seminars at the University of Southern California and the California Institute of Technology. Thanks are due to the participants of those seminars, too.
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References
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Dechert, W.D., Nishimura, K. (2012). A Complete Characterization of Optimal Growth Paths in an Aggregated Model with a Non-Concave Production Function. In: Stachurski, J., Venditti, A., Yano, M. (eds) Nonlinear Dynamics in Equilibrium Models. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-642-22397-6_10
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