Monotonicity and continuity of the critical capital stock in the Dechert-Nishimura model

Kenichi Akao, Takashi Kamihigashi, Kazuo Nishimura

Research output: Contribution to journalArticle

4 Citations (Scopus)

Abstract

We show that the critical capital stock of the Dechert and Nishimura (1983) model is a decreasing and continuous function of the discount factor. We also show that the critical capital stock merges with a nonzero steady state as the discount factor decreases to a certain boundary value, and that the critical capital stock converges to the minimum sustainable capital stock as the discount factor increases to another boundary value.

Original languageEnglish
Pages (from-to)677-682
Number of pages6
JournalJournal of Mathematical Economics
Volume47
Issue number6
DOIs
Publication statusPublished - 2011 Dec

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Discount Factor
Monotonicity
Boundary Value
Model
Continuous Function
Converge
Decrease
Capital stock
Continuity
Discount factor

ASJC Scopus subject areas

  • Economics and Econometrics
  • Applied Mathematics

Cite this

Monotonicity and continuity of the critical capital stock in the Dechert-Nishimura model. / Akao, Kenichi; Kamihigashi, Takashi; Nishimura, Kazuo.

In: Journal of Mathematical Economics, Vol. 47, No. 6, 12.2011, p. 677-682.

Research output: Contribution to journalArticle

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