Discrete - continuous time optimal growth models
Part of : Σπουδαί : journal of economics and business ; Vol.41, No.3, 1991, pages 251-264
Issue:
Pages:
251-264
Author:
Abstract:
Optimal growth models have been either of discrete - or continuous - time formulation. This paps breaks away from this tradition. It considers a model in which consumption takes place at discrete time: while production is continuous, and a model with consumption at all points in time, while output: produced at discrete times. Such formulations make sense and are realistic. First order conditions ar obtained and it is shown that they characterize unique globally optimal solutions. These conditions ar interpreted and their relation to the Euler equation is explained. The discussion reveals a number c interesting aspects of the two models.
Subject:
Subject (LC):
Notes:
Περιέχει σημειώσεις και βιβλιογραφία, The author wish to thank a referee of this journal for his comments on an earlier draft.
