On the least upper bound of discount factors that are compatible with optimal period-three cycles
Article Abstract:
The least upper bound of discount factors of future utilities is derived using a standard optimal growth framework as a guide. The derivation is made by illustrating cyclical optimal period-three paths through dual path prices. Furthermore, the existence of a cyclical optimal period-three path is proven using a solution to a linear equation system. This process will prove the solution of the least upper bound.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1996
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The role of capital depreciation in multi-sectoral models
Article Abstract:
A relationship was established between the degree of complexity of non-linear dynamics and capital value. Utilization of the standard two-sector model with Cobb-Douglas production functions showed that a slow depreciation in capital value further intensifies the complexity of multi-sectoral optimal dynamics. Such effect was evident upon the division capital used in the model by the two sectors every period.
Publication Name: Journal of Economic Behavior & Organization
Subject: Economics
ISSN: 0167-2681
Year: 1998
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