Minimum Impatience Theorems for Recursive Economic Models: v. 390 (Lecture Notes in Economics and Mathematical Systems) - Softcover

Sorger, Gerhard

Softcover

ISBN 10: 354056022X ISBN 13: 9783540560227

Publisher: Springer-Verlag Berlin and Heidelberg GmbH & Co. K, 1992

Synopsis

This book contributes to the lively discussion about the reasons for and thepossible implications of the occurrence of non-linear phenomena and chaos indynamic economic systems. The author takes a fresh look at intertemporal decision problems and shows how the time preference rate of the decision maker relates to the dynamic complexity of the optimal paths. It turns out that in order to get complicated or chaotic optimal paths the decision maker has to be sufficiently impatient. In this sense, the Minimum Impatience Theorems supplement the existing literature on "turnpike theorems" and global asymptotic stability of normative economic systems. The framework in which the results are derived is a very general dynamic optimization problem with recursive (stationary) utility functionals. Both the case where time is a discrete variable and the case of continuous time models are treated.

About this title

Synopsis

This is a contribution to the discussion about the reasons for the occurrence of non-linear phenomena and chaos in dynamic economic systems. The author takes a fresh look at intertemporal decision problems and shows how the time preference rate of the decision-maker relates to the dynamic complexity of the optimal paths. The Minimum Impatience Theorems supplement the existing literature on "turnpike theorems" and global asymptotic stability of normative economic systems. The framework in which the results are derived is a very general dynamic optimization problem with recursive (stationary) utility functionals.

Edition details

• Publisher: Springer-Verlag Berlin and Heidelberg GmbH & Co. K
• Publication date: 1992
• Language: English
• ISBN 10: 354056022X
• ISBN 13: 9783540560227
• Binding: Paperback
• Number of pages: 162