Econometrica: Mar 1982, Volume 50, Issue 2
A Support Price Theorem for the Continuous Time Model of Capital Accumulation
https://doi.org/0012-9682(198203)50:2<427:ASPTFT>2.0.CO;2-E
p.
427-442
Shin-Ichi Takekuma
We consider a model of capital accumulation and prove the existence of a support price path for the optimal path of capital accumulation. The considered model is a continuous time model of infinite horizon. Our problem is the so-called convex problem of optimal control without differentiability. We adopt the overtaking optimality criterion and prove the existence of a dual price path which supports the value function as well as the Hamiltonian function.Log In To View Full Content