Models of economic dynamics with explicit consumption
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So far, models of economic dynamics, specifically the general technological model presented in Section 3.1, were studied from the point of view of pure production. Consumption was introduced into these models in the form of additional processes of production and was not formally distinct from the latter. This representation imposed economically unrealistic requirements on the process of consumption. In particular, the concept of an optimal trajectory was not related directly to the fact that consumption is the final objective of their process.
KeywordsOptimal Trajectory Economic Dynamic Economic Equilibrium Convex Programming Problem Strict Concavity
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