A model of optimal growth strategy
Article Abstract:
An optimal growth model with convex-concave technology is developed and applied to a country which can invest in foreign capital markets. The income from borrowing on capital market can be used for consuming domestic or foreign goods, investing in physical capital and investing in capital markets. The continuous-time model presented was found to have two nontrivial steady states. The high steady state is perpetually optimal while the lower is not always optimal. It was also shown that a poverty trap may occur if the time preference is greater than the real international interest rate.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1999
User Contributions:
Comment about this article or add new information about this topic:
Optimal fiscal policy in a stochastic growth model
Article Abstract:
An analysis of optimal fiscal policy development under certain economic growth conditions is presented. The analysis applies the topic to a dynamic Ramsey taxation framework and assumes that identical agents pervade the economy, government expenditures are measured as exogenous variables and government may precommit itself. It is shown that several stochastic variables need to be considered in the evaluation of optimal fiscal policy.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
Projection methods for solving aggregate growth models
Article Abstract:
An analysis of a general numerical approach called the projection method is presented. The analysis considers numerical analysis principles for developing efficient implementations for the method. It is shown that error measures can be derived which describe agent optimization errors. In addition, programs with high accuracy and speed levels can be developed from the analysis.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1992
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: Attitudes of private investors toward various forms and methods of savings. The Causes of Barter, Nonpayments, and Tax Evasion in the Russian Economy
- Abstracts: The effects of real exchange rate on the demand for exports: a case of Malaysian primary commodities. Malaysia's public enterprises: a performance evaluation
- Abstracts: The baby sharks: strategies of Britain's supergrowth companies. Social responsibility: what leading companies do
- Abstracts: Perpetual signalling with imperfectly correlated costs. Auction form preferences of risk-averse bid takers. Revenue-raising versus other approaches to environmental protection: the critical significance of preexisting tax distortions
- Abstracts: The integrability problem of asset prices. Dynamic allocation in an altruistic overlapping generations economy