Hostname: page-component-cb9f654ff-hqlzj Total loading time: 0 Render date: 2025-08-19T08:31:48.761Z Has data issue: false hasContentIssue false
  • English
  • Français

A CORRESPONDENCE-THEORETIC APPROACH TO DYNAMIC OPTIMIZATION

Published online by Cambridge University Press:  01 May 2009

C. D. Aliprantis  and
G. Camera
C. D. Aliprantis
Affiliation:
Krannert School of Management, Purdue University
G. Camera*
Affiliation:
Krannert School of Management, Purdue University
*
Address correspondence to: Gabriele Camera, Department of Economics, Krannert School of Management, Purdue University, 403 West State Street, West Lafayette, IN 47907-2056, USA; e-mail: gcamera@purdue.edu.
Get access Rights & Permissions [Opens in a new window]

Abstract

This paper introduces a method of optimization in infinite-horizon economies based on the theory of correspondences. The proposed approach allow us to study time-separable and non-time-separable dynamic economic models without resorting to fixed point theorems or transversality conditions. When our technique is applied to the standard time-separable model it provides an alternative and straightforward way to derive the common recursive formulation of these models by means of Bellman equations.

Keywords

Optimal PlansPolicy FunctionValue Function

Information

Type
Articles
Information
Macroeconomic Dynamics , Volume 13 , Supplement S1 , May 2009 , pp. 97 - 117
Copyright
Copyright © Cambridge University Press 2009

Access options

Get access to the full version of this content by using one of the access options below. (Log in options will check for institutional or personal access. Content may require purchase if you do not have access.)

Article purchase

Temporarily unavailable

References

REFERENCES

Aliprantis, C.D. and Border, K.C. (2006) Infinite Dimensional Analysis, 3rd ed., New York/London: Springer–Verlag.Google Scholar
Balasko, Y., Cass, D., and Shell, K. (1980) Existence of competitive equilibrium in a general overlapping-generations model. Journal of Economic Theory 23, 307–322.CrossRefGoogle Scholar
Balasko, Y. and Shell, K. (1980) The overlapping-generations model I: The case of pure exchange without money. Journal of Economic Theory 23, 281–306.CrossRefGoogle Scholar
Becker, R.A. and Boyd, J.H. III (1997) Capital Theory, Equilibrium Analysis and Recursive Utility. Malden, MA: Blackwell Publishers.Google Scholar
Boldrin, M. and Rustichini, A. (1994) Growth and indeterminacy in dynamic models with externalities. Econometrica 62, 323–343.CrossRefGoogle Scholar
Dutta, P.K. and Mitra, T. (1989) Maximum theorems for convex structures with an application to the theory of optimal intertemporal allocation. Journal of Mathematical Economics 18, 77–86.CrossRefGoogle Scholar
Harris, M. (1987) Dynamic Economic Analysis. London/New York; Oxford University Press.Google Scholar
Majumdar, M., Mitra, T., and Nishimura, K. (eds.) (2000) Optimization and Chaos, Studies in Economic Theory, Vol. 11. Berlin/Heidelberg: Springer-Verlag.CrossRefGoogle Scholar
Samuelson, P.A. (1958) An exact consumption-loan model of interest with or without the social contrivance of money. Journal of Political Economy 66, 467–482.CrossRefGoogle Scholar
Stokey, N., Lucas, R.E. Jr., and Prescott, E.C. (1989) Recursive Methods in Economic Dynamics. Cambridge, MA: Harvard University Press.CrossRefGoogle Scholar
Wilson, C.A. (1981) Equilibrium in dynamic models with an infinity of agents. Journal of Economic Theory 24, 95–111.CrossRefGoogle Scholar