On the uniqueness of the optimal path in a discrete-time model à la Lucas (1988)
Résumé
We address the fundamental issue of the optimality of the Balanced Growth Path (BGP) in a discrete-time version of Lucas (1988). After proving that the value function is supermodular and that any optimal solution is monotone, we prove that the BGP is optimal and that it is the unique optimal solution. Because of human capital depreciation, we also show that the economy can experience optimal endogenous degrowth.
Domaines
Sciences de l'Homme et SociétéOrigine | Fichiers produits par l'(les) auteur(s) |
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