Recursive utility and optimal growth with bounded or unbounded returns

• 成果类型: Article
• 署名作者: Le Van, C; Vailakis, Y
• 署名单位: Universite Catholique Louvain
• 刊物名称: JOURNAL OF ECONOMIC THEORY
• ISSN/ISSBN: 0022-0531
• DOI: 10.1016/j.jet.2004.06.007
• 发表日期: 2005
• 页码: 187-209
• 关键词: Recursive utility; dynamic programming; Bellman equation; unbounded returns

摘要

In this paper, we propose a unifying approach to the study of recursive economic problems. Postulating an aggregator function as the fundamental expression of tastes, we explore conditions under which a utility function can be constructed. We also modify the usual dynamic programming arguments to include this class of models. We show that Bellman's equation still holds, so many results known for the additively separable case can be generalized for this general description of preferences. Our approach is general, allowing for both bounded and unbounded returns. Many recursive economic models studied in the literature are particular cases of our setting. (c) 2004 Elsevier Inc. All rights reserved.