THE GENERAL INSTABILITY OF A CLASS OF COMPETITIVE GROWTH PROCESSES.

Abstract

The paper deals with the instability properties of competitive growth systems which are always in equilibrium. The paper approaches the problem from the standpoint of the theory of optimal growth. It is shown that any competitive growth process which can be constructed from an optimization of an intertemporal utility function is unstable. The inverse optimal problem is then solved for the Solow model, and it is argued that the model 'looks' stable but is not. (Author)

Document Details

Document Type
Technical Report
Publication Date
Dec 16, 1966
Accession Number
AD0646007

Entities

People

  • Mordecai Kurz

Organizations

  • Stanford University

Tags

Communities of Interest

  • Materials and Manufacturing Processes

DTIC Thesaurus Topics

  • Instability
  • Optimization

Fields of Study

  • Economics

Readers

  • Economics
  • Mathematical Modeling and Probability Theory.