A Short Proof of Cass' Theorem on Capital Overaccumulation.
CALIFORNIA UNIV BERKELEY OPERATIONS RESEARCH CENTER
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The theorem of the title asserts that under suitable assumptions a program of capital accumulation is inefficient if and only if the corresponding price sequence p sub t satisfies the summation from t0 to infinity of 1p sub t infinity. The authors present a short proof of this fact generalized to the case where the production function may vary from one period to the next. Author
- Economics and Cost Analysis
- Operations Research