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

Jess Benhabib, Aldo Rustichini

    Research output: Contribution to journalArticle

    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 languageEnglish (US)
    Pages (from-to)807-813
    Number of pages7
    JournalJournal of Economic Dynamics and Control
    Volume18
    Issue number3-4
    StatePublished - May 1 1994

    Keywords

    • Dynamic programming
    • Growth

    ASJC Scopus subject areas

    • Economics and Econometrics
    • Control and Optimization
    • Applied Mathematics

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