From Linear to Nonlinear Utility in Vintage Capital Models

Optimization problems with nonlinear utility and endogenous capital lifetime are investigated in one- and two-sector modifications of the Solow vintage capital model. Both models have the same balanced growth path in the case of exponential technological change and labour. Turnpike theorems in normal form are proved for the optimal capital lifetime in both models. The differences between the cases of the linear and nonlinear utility are highlighted.

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Year of publication:	2008
Authors:	HRITONENKO, NATALI ; YATSENKO, YURI
Published in:	Mathematical Population Studies. - Taylor & Francis Journals, ISSN 0889-8480. - Vol. 15.2008, 4, p. 230-248
Publisher:	Taylor & Francis Journals
Subject:	balanced growth path \| capital lifetime \| nonlinear utility \| optimization \| turnpike theorems \| vintage capital models

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Extent:	text/html
Type of publication:	Article
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10009205614