Non-Convex Aggregate Technology and Optimal Economic Growth

This paper examines a model of optimal growth where the agregation of two separate well behaved and concave production technologies exhibits a basic non-convexity. Multiple equilibria prevail in an intermediate range of interest rate. However, we show that the optimal paths monotonically converge to the one single appropriate equilibrium steady state.

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Year of publication:	2006
Authors:	Hung, N.M. ; Van, C. Le ; Michel, P.
Institutions:	Département d'Économique, Université Laval

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Extent:	application/pdf
Series:	Cahiers de recherche.
Type of publication:	Book / Working Paper
Language:	English
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005796038