Equivalence of utilitarian maximal and weakly maximal programs

by Kuntal Banerjee and Tapan Mitra

For a class of aggregative optimal growth models, which allow for a non-convex and non-differentiable production technology, this paper examines whether the set of utilitarian maximal programs coincides with the set of weakly maximal programs. It identifies a condition, called the Phelps-Koopmans condition, under which the equivalence result holds. An example is provided to demonstrate that the equivalence result is invalid when the Phelps-Koopmans condition does not hold. -- Utilitarian Maximal ; Weakly Maximal ; Phelps-Koopmans condition ; Aggregative growth models

MoreLess

Year of publication:	2009
Other Persons:	Banerjee, Kuntal (contributor) ; Mitra, Tapan (contributor)
Publisher:	Ithaca, NY : Center for Analytical Economics
Subject:	Theorie \| Theory \| Utilitarismus \| Utilitarianism