1. Solution to an open question about optimal economic growth models.
- Author
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Huong, Vu Thi, Kaya, C. Yalçın, and Yen, Nguyen Dong
- Subjects
- *
ECONOMIC models , *ECONOMIC expansion , *INDUSTRIAL productivity , *OPEN-ended questions , *INTEREST rates - Abstract
We prove that if the total factor productivity A of an aggregative economy is right at the barrier $ \sigma +\lambda $ σ + λ , with σ being the growth rate of labor force and λ the real interest rate, then the unique policy to optimally control the economy is the same as the one for optimally controlling weak economies, where $ A \lt \sigma +\lambda $ A < σ + λ. This result gives a complete answer for the interesting open question raised by Vu Thi Huong in her recent paper [Optimal economic growth problems with high values of total factor productivity. Appl Anal. 2022;101:1315–1329]. [ABSTRACT FROM AUTHOR]
- Published
- 2024
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