ISSN:
1432-0479
Keywords:
JEL Classification Numbers: C61
;
D90
;
O41.
Source:
Springer Online Journal Archives 1860-2000
Topics:
Economics
Notes:
Summary. This paper analyzes the optimal allocation problem of a small trading country facing an uncertain technology. It is involved in production of many commodities. Differentiability cannot be guaranteed, hence, the Ramsey-Euler condition of optimality needs to be modified. From the optimality criterion, we derive a pair of conditions, which does not require differentiability. If “enough” uncertainty is allowed, the sequence of the distribution functions of investment expenditure converges uniformly to a unique invariant measure. In addition to the weak convergence of the stochastic process of investment expenditure we also have the sequences of the stochastic process of investment expenditure converging weakly.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1007/s001990050249
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