A Turnpike Theorem for a Non-stationary Gale Economy with Limit Technology : a Particular Case

Emil Panek

Abstract

This paper is a continuation of the work by Panek [2013a], [2013b] and Panek and Runka [2011], with direct reference to [2013b]. The difference between this paper and paper [2013b] reveals when applying a different optimality criterion with the help of which growth processes are assessed. The optimality criterion in [2013b] is the value of production in the last period of a fixed planning horizon T = {0, 1, ..., t1} measured in von Neumann equilibrium prices. In this paper we take the total value of output (also measured in von Neumann prices) produced in the whole horizon T as a growth criterion. The aim of the paper is to prove that a change of growth criterion does not deprive the economy of its turnpike properties. It was pointed out that a Gale economy with a changeable technology convergent to the limit technology also preserves similar properties if we accept the social utility function (with standard properties) as a growth criterion. The paper consists of three sections. In Section 1 we present a non-stationary Galetype model with a limit technology. Section 2 contains proof of the so-called 'weak' turnpike theorem, whilst in Section 3 we prove a 'strong' version of the turnpike theorem for the economy under investigation. The paper closes with final comments.
Author Emil Panek (WIiGE / KEM)
Emil Panek,,
- Department of Mathematical Economics
Journal seriesEconomics and Business Review, [Poznan University of Economics Review], ISSN 2392-1641, e-ISSN 2450-0097, [1643-5877], (B 15 pkt)
Issue year2015
Vol1 (15)
No4
Pages3-13
Publication size in sheets0.5
Keywords in English non-stationary Gale economy, limit technology, von Neumann equilibrium, turnpike
DOIDOI:10.18559/ebr.2015.4.1
URL http://www.ebr.edu.pl/pub/2015_4_3.pdf
Languageen angielski
File
2015_4_3.pdf 4.13 MB
Score (nominal)15
ScoreMinisterial score = 15.0, 31-03-2019, ArticleFromJournal
Ministerial score (2013-2016) = 15.0, 31-03-2019, ArticleFromJournal
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