On the Critical Capital Stock in a Continuous Time Aggregate Growth Model with a Nonconcave Production Function
2012/05/01
研討會日期 : 2012-05-01
時間 : 14:30
主講人 : Professor Ken-Ichi Akao
地點 : Conference Room B110
演講者簡介 : Ken-Ichi Akao received his Ph.D. in Environmental Economics from Kyoto University in 1993. He is currently serving as Professor of Environmental and Resource Economics at Waseda University. His research field is in environmental and resource economics, economic theory and forestry.
演講摘要 : An intrinsic feature of a nonconcave optimal growth model is the critical capital stock such that any optimal capital path from an initial stock below this critical stock converges to zero, and any optimal capital path from an initial capital stock above this critical stock converges to a nonzero steady state. Generically, the critical capital stock is not an optimal steady state and the existence depends on the value of the discount rate. For a continuous time aggregate growth model, we show that: (a) the critical capital stock is a continuous and strictly increasing function of the discount rate and (b) at the upper limit, the critical capital stock merges with an interior optimal steady state, and with greater discount rates, the steady state is not optimal or does not exist.
