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

Jess Benhabib, Aldo Rustichini

Research output: Contribution to journalArticlepeer-review

16 Scopus citations

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
DOIs
StatePublished - Jan 1 1994
Externally publishedYes

Keywords

  • Dynamic programming
  • Growth

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