Stability Analysis in a Leontief Optimal Growth Model.
CALIFORNIA UNIV BERKELEY OPERATIONS RESEARCH CENTER
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It is shown in our model that there are two types of optimal stationary programs--boundary type and interior type. There exists a critical discount factor delta for each type of optimal stationary program such that when the discount factor delta is less than delta primed, the corresponding optimal program will be unstable. Examples are given to demonstrate this. Author
- Theoretical Mathematics