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Optimal growth when consumption takes time

Abstract : This article analyzes a one-sector growth model where the consumption takes time. When the consumption takes time, the consumption set is compact and we meet satiety. However, we prove that dynamic constraints are binding. This result is crucial to prove that, under well-known assumptions in macroeconomic dynamic programming, the optimal path is monotonic and always converges to a unique nontrivial steady state as in the case where consumption is timeless.
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https://hal-paris1.archives-ouvertes.fr/hal-03261249
Contributor : Umr 8174 Centre d'Économie de la Sorbonne <>
Submitted on : Tuesday, June 15, 2021 - 3:31:12 PM
Last modification on : Thursday, July 15, 2021 - 2:25:25 PM

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Thai Ha‐huy, Cuong Le Van, Thi‐do‐hanh Nguyen. Optimal growth when consumption takes time. Journal of Public Economic Theory, Wiley, 2020, 22 (5), pp.1442-1461. ⟨10.1111/jpet.12467⟩. ⟨hal-03261249⟩

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