Akao, Ken-Ichi; Kamihigashi, Takashi; Nishimura, Kazuo - Research Institute for Economics and Business … - 2011
We show that the critical capital stock of the Dechert-Nishimura (1983) model is a decreasing and continuous function of the discount factor. We also show that the critical capital stock merges with a nonzero steady state as the discount factor decreases to a certain boundary value, and that the...