TY - JOUR
T1 - Stochastic dynamic models with stock-dependent rewards
AU - Nyarko, Yaw
AU - Olson, Lars J.
PY - 1991/10
Y1 - 1991/10
N2 - We examine the behavior of optimal consumption and investment policies in aggregate stochastic growth models when utility depends on both consumption and the stock level. Such models arise in the study of renewable resources, monetary growth, and growth with public capital. Conditions are given which guarantee that optimal policies are monotonic. The limiting behavior of the optimal consumption, investment, and output processes is characterized.
AB - We examine the behavior of optimal consumption and investment policies in aggregate stochastic growth models when utility depends on both consumption and the stock level. Such models arise in the study of renewable resources, monetary growth, and growth with public capital. Conditions are given which guarantee that optimal policies are monotonic. The limiting behavior of the optimal consumption, investment, and output processes is characterized.
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U2 - 10.1016/0022-0531(91)90063-A
DO - 10.1016/0022-0531(91)90063-A
M3 - Article
AN - SCOPUS:0011619939
SN - 0022-0531
VL - 55
SP - 161
EP - 168
JO - Journal of Economic Theory
JF - Journal of Economic Theory
IS - 1
ER -