Optimality of a Linear Decision Rule in Discrete Time AK Model

IF 0.3 4区经济学 Q4 ECONOMICS

B E Journal of Theoretical Economics Pub Date : 2021-11-24 DOI:10.1515/bejte-2021-0061

Myungkyu Shim

引用次数: 0

Abstract

Abstract Surprisingly, formal proof on the optimality of a linear decision rule in the discrete time AK model with a CRRA utility function has not been established in the growth literature while that in the continuous time counterpart is well-established. This note fills such a gap: I provide a formal proof that consumption being linearly related to investment is a sufficient and necessary condition for Pareto optimality in the discrete time AK model.

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离散时间AK模型中线性决策规则的最优性

令人惊讶的是，在增长文献中尚未建立具有CRRA效用函数的离散时间AK模型中线性决策规则最优性的形式化证明，而在连续时间对应模型中则建立了最优性的形式化证明。这篇笔记填补了这样一个空白:我提供了一个正式的证明，证明消费与投资线性相关是离散时间AK模型中帕累托最优的充要条件。

本文章由计算机程序翻译，如有差异，请以英文原文为准。

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来源期刊

B E Journal of Theoretical Economics ECONOMICS-

CiteScore

0.80

自引率

25.00%

发文量

期刊介绍： We welcome submissions in all areas of economic theory, both applied theory and \"pure\" theory. Contributions can be either innovations in economic theory or rigorous new applications of existing theory. Pure theory papers include, but are by no means limited to, those in behavioral economics and decision theory, game theory, general equilibrium theory, and the theory of economic mechanisms. Applications could encompass, but are by no means limited to, contract theory, public finance, financial economics, industrial organization, law and economics, and labor economics.