Recursive utility and optimal growth with bounded or unbounded returns (Q2386135)

The authors introduce the aggregator and show how a utility function can be recovered from it. They also present some applications of their technique by considering specific forms for the aggregator function. The authors prove the existence of optimal paths and establish the properties of the value function. It turns out that the value function is the unique solution to the Bellman equation within the class of functions that satisfy these properties. Finally, they show that the operator defined by the Bellman equation provides an algorithm to find the value function.