Minimum impatience theorems for recursive economic models (Q1311454): Difference between revisions

The book is concerned with deterministic versions of dynamic economic systems with emphasis on nonlinear dynamics, complexity and chaos. It presents a rather complete theory of deterministic dynamic programming in the framework of a specific model of recursive utility maximisation. The main results of the book are the minimum impatience theorems. Whereas turnpike theorems concern the properties of the solutions of optimal growth problem, the minimum impatience theorems concern the properties of the underlying model for a given optimal policy function. These theorems can be regarded as necessary existence conditions for the inverse optimal growth problem or more generally for inverse problem of dynamic programming. The results of the book provide a means to find for every mapping \(h\) a number \(\delta^ h\) such that \(h\) is certainly not an optimal policy function in any model, satisfying continuity, concavity, and boundedness assumptions with the discount factor \(\delta\) such that \(\delta\geq \delta^ h\). The book consists of two parts which are almost identical in structure. The first one deals with models in a discrete time framework, whereas the second part assumes that time is a continuous variable. Each part contains 3 chapters: model, preliminary results, minimum impatience theorems. The book is quite self-contained, it includes every step from the model formulation to the final results. All results of the book are illustrated by simple examples and they are valid for a quite general class of dynamic optimisation models.