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Article
From linear to nonlinear utility in vintage capital models
Mathematics Faculty Publications
  • Natali Hritonenko, Prairie View A&M University
  • Yuri Yatsenko, Houston Baptist University
Document Type
Conference Proceeding
Publication Date
12-5-2008
Abstract

Optimization problems with nonlinear utility and endogenous capital lifetime are investigated in one- and two-sector modifications of the Solow vintage capital model. Both models have the same balanced growth path in the case of exponential technological change and labour. Turnpike theorems in normal form are proved for the optimal capital lifetime in both models. The differences between the cases of the linear and nonlinear utility are highlighted.

Citation Information
Natali Hritonenko and Yuri Yatsenko. "From linear to nonlinear utility in vintage capital models" (2008)
Available at: http://works.bepress.com/natali-hritonenko/17/