Optimal growth with recursive utility: An existence result without convexity assumptions (Q5949890)

An existence theorem of optimal growth is proved in the case of recursive utility that involves a nonconcave integrand without convexity assumptions. The program space under consideration is a subset of the weighted Sobolev space \(W_\delta^{1,2} ([0,\infty), \mathbb{R}^n)\). The proof is based on the classical Weierstrass theorem, namely the feasible set is compact and the objective functional is continuous in the norm topology of the program space. Certain natural conditions on the preferences and on the technology are supposed to be satisfied.