The Czech Economic Review is published by Charles University in Prague. The journal was founded in 2007 as a descendant to a traditional Czech-written outlet, Acta Universitatis Carolinae Oeconomica (AUCO). Three issues are published per volume. All articles and communications are available online free of charge. Printed copies can also be ordered.
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CZECH ECONOMIC REVIEW, Vol 2015 No 1 (2016), 49–73
Robust Turnpikes Deduced by the Minimum-Time Needed toward Economic Maturity
Darong Dai
published online: 19. 10. 2015
abstract
In the paper, a one-sector neoclassical model with stochastic growth has been constructed. The major goal of the study is to characterize relevant mathematical properties of efficient development paths for underdeveloped economies. Since economic maturity is a reasonable objective, we mainly focus on the long-run features of economic development. Indeed, the notion of economic maturity is well-defined in the model, and also a thorough characterization of the minimum time needed toward economic maturity is offered with intuitive interpretations discussed. Moreover, it is confirmed that the capital-labor ratio corresponding to the state of economic maturity provides us with a robust turnpike of the optimal path of capital accumulation.
keywords: stochastic growth; economic maturity; minimum-time objective; asymptotic turnpike theorem; neighborhood turnpike theorem; robustness
157 x 230 mm
periodicity: 3 x per year
ISSN: 1802-4696
E-ISSN: 1805-9406