A note on a new class of solutions to dynamic programming problems arising in economic growth

Jess Benhabib; Aldo Rustichini

doi:10.1016/0165-1889(94)90032-9

A note on a new class of solutions to dynamic programming problems arising in economic growth

Jess Benhabib, Aldo Rustichini

Research output: Contribution to journal › Article › peer-review

Abstract

We provide exact solutions for a class of stochastic dynamic programming problems in growth theory involving pairs of constant relative risk aversion utility functions and CES technologies. This generalizes the solutions for the well-known case of logarithmic utility coupled with Cobb-Douglas production functions. We are also able to incorporate depreciation schemes through a vintage capital approach.

Original language	English (US)
Pages (from-to)	807-813
Number of pages	7
Journal	Journal of Economic Dynamics and Control
Volume	18
Issue number	3-4
DOIs	https://doi.org/10.1016/0165-1889(94)90032-9
State	Published - 1994

Keywords

Dynamic programming
Growth

ASJC Scopus subject areas

Economics and Econometrics
Control and Optimization
Applied Mathematics

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10.1016/0165-1889(94)90032-9

Cite this

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abstract = "We provide exact solutions for a class of stochastic dynamic programming problems in growth theory involving pairs of constant relative risk aversion utility functions and CES technologies. This generalizes the solutions for the well-known case of logarithmic utility coupled with Cobb-Douglas production functions. We are also able to incorporate depreciation schemes through a vintage capital approach.",

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AB - We provide exact solutions for a class of stochastic dynamic programming problems in growth theory involving pairs of constant relative risk aversion utility functions and CES technologies. This generalizes the solutions for the well-known case of logarithmic utility coupled with Cobb-Douglas production functions. We are also able to incorporate depreciation schemes through a vintage capital approach.

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KW - Growth

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A note on a new class of solutions to dynamic programming problems arising in economic growth

Abstract

Keywords

ASJC Scopus subject areas

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