Explicit Solution to Optimal Growth Models
Why is this work in the frame?
A frame that forgets how it found something cannot be audited. These are the routes that admitted this work.
No Canadian affiliation. An affiliation-only frame — the usual design — would never have seen this work. It is one of the works that make the case for inverting the frame.
Post-publication record
- Nature
- Retraction
- Reason
- Notice - Limited or No Information;Removed;
- Date
- 10/10/2015 0:00
- Flagged by OpenAlex?
- Yes
Source: Retraction Watch, joined by DOI. OpenAlex records retraction as is_retracted, a boolean over a state space with at least four values, so it cannot express an expression of concern, a correction or a reinstatement — it reports them as false, which reads as “fine”.
Abstract
This paper shows that the standard optimal growth model can be solved explicitly by using a utility function describing preferences for consumption and savings. Such a maximising criterion including the flow of savings can actually be strongly motivated by two arguments. First, the basic assumption of a representative agent who wishes to consume and save a part of his income each time, can be interpreted as an implicit assumption of some degree of preference for thriftiness. Second, this function formalizes also the concept of Max Weber‟s spirit of capitalism (with a direct preference for wealth), which makes the model similar to the one of Heng-Fu Zou (1994) except that his specification includes the capital stock. The resulting model offers an interesting application of the Pontryagin‟s Maximum Principle, as well as elegant closed form solutions.
Fetched live from OpenAlex and de-inverted. Abstracts are not stored in this database: the inverted indexes are 8.6 GB of the frame’s 9.3 GB of text, and the host has 13 GB free.
The record
- Venue
- International Journal of Economics and Finance
- Topic
- Economic theories and models
- Field
- Economics, Econometrics and Finance
- Canadian institutions
- —
- Funders
- —
- Keywords
- Mathematical economicsEconomicsPreferenceFunction (biology)Growth modelConsumption (sociology)Stock (firearms)Capital (architecture)MathematicsMicroeconomics
- Has abstract in OpenAlex
- yes