Strong concavity properties of indirect utility functions in multisector optimal growth models
Article Abstract:
A solution is sought to the problem of providing some conditions on the fundamentals that creates strongly concave indirect utility function. It has been shown that strong concavity of indirect functions in multisector growth models is a primary assumption to show stability of steady states and smoothness of optimal paths. If the capital goods technologies are Lipschitz-continuous and if consumption good production function is alpha-concave, then the indirect function is strongly concave.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1997
User Contributions:
Comment about this article or add new information about this topic:
Does rational learning lead to Nash equilibrium in finitely repeated games?
Article Abstract:
Finite horizon games will achieve Nash equilibrium due to the equivalency of asymptotic continuity in finite games and absolute continuity in infinitely repeated games. Asymptotic continuity results from players assigning vanishing probability to event sequences, leading to rational learning about opponent's strategies and probable outcomes.
Publication Name: Journal of Economic Theory
Subject: Economics
ISSN: 0022-0531
Year: 1998
User Contributions:
Comment about this article or add new information about this topic:
- Abstracts: On the optimality of interest rate smoothing. Aggregation and irrelevance in multi-sector models
- Abstracts: Th existence of steady states in multisector capital accumulation models with recursive preferences. Structure of Pareto optima when agents have stochastic recursive preferences
- Abstracts: Inequality reducing properties of composite taxation. Redistribute effects of minimal equal sacrifice taxation
- Abstracts: The cyclical properties of consumption growth and the real terms structure. The aggregate effects of sectoral reallocations
- Abstracts: Asymmetry, imperfectly transferable utility, and the role of fiat money in improving terms of trade