This paper introduces a method of optimization in infinite-horizon economies based on the theory of correspondences. The proposed approach allow us to study time-separable and non-time-separable dynamic economic models without resorting to fixed point theorems or transversality conditions. When our technique is applied to the standard time-separable model it provides an alternative and straightforward way to derive the common recursive formulation of these models by means of Bellman equations.
A correspondence-theoretic approach to dynamic optimization / Aliprantis, C.D.; Camera, G.*. - In: MACROECONOMIC DYNAMICS. - ISSN 1365-1005. - STAMPA. - 13:SUPPL. S1(2009), pp. 97-117. [10.1017/S1365100509080134]
A correspondence-theoretic approach to dynamic optimization
Camera, G.
2009
Abstract
This paper introduces a method of optimization in infinite-horizon economies based on the theory of correspondences. The proposed approach allow us to study time-separable and non-time-separable dynamic economic models without resorting to fixed point theorems or transversality conditions. When our technique is applied to the standard time-separable model it provides an alternative and straightforward way to derive the common recursive formulation of these models by means of Bellman equations.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.