On optimal growth models when the discount factor is near 1 or equal to 1

The aim of this paper is to fill the gap between intertemporal growth models when the discount factor beta is close to one and when it equals one.We show that the value function and the policy function are continuous with respect both to the discount factor and the initial stock of capitalx0. We prove that the optimal policy g(x0) is differentiable and that Dg(x0) is continuous with respect to (beta, x0). As a by-product, a globalturnpike result is proved.

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Year of publication:	2006-03
Authors:	Van, Cuong Le ; Morhaim, Lisa
Institutions:	HAL
Subject:	Optimal growth \| discount factor \| value function \| policy function \| differentiability \| turnpike

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Extent:	application/pdf
Series:	Post-Print.
Type of publication:	Book / Working Paper
Notes:	View the original document on HAL open archive server: http://halshs.archives-ouvertes.fr/halshs-00096034 Published, International Journal of Economic Theory, 2006, 2, 1, 55-76
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10010750651