Document Type
Article
Publication Date
2009
Abstract
This paper introduces a method of optimization in infinite-horizon economies based on the theory of correspondences. The proposed approach allow us to study time-separable and non-time-separable dynamic economic models without resorting to fixed point theorems or transversality conditions. When our technique is applied to the standard time-separable model it provides an alternative and straightforward way to derive the common recursive formulation of these models by means of Bellman equations.
Recommended Citation
Aliprantis, C.D. and G. Camera (2009). A Correspondence-theoretic approach to dynamic optimization. Macroeconomic Dynamics, 13, 97–117. doi: 10.1017/S1365100509080134
Peer Reviewed
1
Copyright
Cambridge University Press
Comments
This is a pre-copy-editing, author-produced PDF of an article accepted for publication in Macroeconomic Dynamics, volume 13 (2009), following peer review. The definitive publisher-authenticated version is available online at DOI: 10.1017/S1365100509080134