THEORY OF GROWTH: REMODELLING AND REFINEMENTS,
Abstract
When all the factors of production are produced in the system and capitalists' consumption is allowed, the existence of the Golden Equilibrium (or the von Neumann equilibrium) can be proved even with a weak Malthusian assumption. The equilibrium turns out to be a state of instantaneous efficiency as well as a temporary Pareto optimum. However, its intertemporal efficiency and optimality do not necessarily follow. If all goods and labor are provided at the beginning in positive amounts without the limitational factor being specified, then all efficient paths defined in terms of the final stages converge on the turnpike in the broad sense that the average output per man over T periods of each goods approximates the turnpike output per man when T tends to infinity. In addition, the consumption turnpike theorem is discussed on the assumption that society maximizes the utility that depends on the discounted average of consumption streams and the population stream. (Author)
Document Details
- Document Type
- Technical Report
- Publication Date
- Apr 12, 1965
- Accession Number
- AD0614252
Entities
People
- Michio Morishima
Organizations
- Stanford University