Econometrica: Oct 1966, Volume 34, Issue 4

Optimum Growth in an Aggregative Model of Capital Accumulation: A Turnpike Theorem

https://doi.org/0012-9682(196610)34:4<833:OGIAAM>2.0.CO;2-A
p. 833-850

David Cass

This paper presents an analysis of the behavior of growth paths which are optimum with respect to the social welfare generated by consumption over a finite planning period. The principal result is the establishment of a (modified) golden rule turnpike property for such paths.

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