On choice of technique in the Robinson-Solow-Srinivasan model

• Autor(a) principal: Khan, Ali
• Data de Publicação: 2003
• Outros Autores: Mitra, Tapan
• Tipo de documento: Artigo
• Idioma: eng
• Título da fonte: Repositório Institucional do FGV (FGV Repositório Digital)
• Texto Completo: http://hdl.handle.net/10438/640
• topic: Choice of technique; Overtaking criterion; Golden-rule stock; Golden-rule prices; Value-loss; Cycling; Average turnpike property; Price-support property; Optimal program; Stiglitz program; o-program; Long-run; Transition dynamics; Economia; Economia; Economia matemática

We report results on the optimal \choice of technique' in a model originally formulated by Robinson, Solow and Srinivasan (henceforth, the RSS model) and further discussed by Okishio and Stiglitz. By viewing this vintage-capital model without discounting as a speci c instance of the general theory of intertemporal resource allocation associated with Brock, Gale and McKenzie, we resolve longstanding conjectures in the form of theorems on the existence and price support of optimal paths, and of conditions suÆcient for the optimality of a policy rst identi ed by Stiglitz. We dispose of the necessity of these conditions in surprisingly simple examples of economies in which (i) an optimal path is periodic, (ii) a path following Stiglitz' policy is bad, and (iii) there is optimal investment in di erent vintages at di erent times. (129 words)