ISSN:
1617-7134
Keywords:
optimal programs
;
competitive conditions
;
transversality condition
;
intertemporal decentralization
;
C61
;
D90
;
O41
Source:
Springer Online Journal Archives 1860-2000
Topics:
Economics
Notes:
Abstract For infinite-horizon optimal-growth problems the standard result in the literature says that a program is optimal if and only if associated with it is a sequence of present-value prices at which the program satisfies (i) a set of myopic “competitive conditions,” and (ii) an asymptotic “transversality condition”. The principal result of this paper points out the interesting and surprising fact that at least for a class of multisector models where the production side is described by a simple linear model, and there are some limiting primary factors, the competitive conditions alone characterize an optimal program.
Type of Medium:
Electronic Resource
URL:
http://dx.doi.org/10.1007/BF01231160
