Impatience and dynamic optimal behavior: a bifurcation analysis of the Robinson-Solow-Srinivasan model (Q654078)

The authors deal with a dynamic optimization framework which is a two-sector version of model due to the models presented by Robinson, Solow and Srinivasan, henceforth referred to as the RSS model. The outline of this paper is straightforward. Section 2 presents the preliminaries of the two-sector RSS model. Section 3 provides four lemmas which form the principal tools for characterizing optimality; self-contained proofs of these results are provided in an appendix. Section 4 presents the main results on bifurcation analysis with respect to the discount factor. Section is devoted exclusively to a more detailed analysis of the optimal policy correspondence in the borderline case.