Abstract
Let us consider again the non linear growth model presented in § 23.3, to study what happens when, as we did with the turnpike theory, a choice function is introduced to select the best path among the set of all possible programs. The choice function can be thought of as a welfare function agreed upon by all, or at least by a majority of, the members of the economy.1 At present, instead of studying a problem where only the final state of the economy counts, we assume that the results obtained in all periods should count, in particular, that society as a whole is interested in the sequence of consumption vectors affordable in every time period.
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© 2000 Springer-Verlag Berlin Heidelberg
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Nicola, P. (2000). Optimal Growth. In: Mainstream Mathematical Economics in the 20th Century. Springer, Berlin, Heidelberg. https://doi.org/10.1007/978-3-662-04238-0_24
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DOI: https://doi.org/10.1007/978-3-662-04238-0_24
Publisher Name: Springer, Berlin, Heidelberg
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