Abstract
We extend the classical growth theory model assuming that production function is an arbitrary continuously differentiable function on its domain and the saving rate and depreciation rate of capital depend on time. Then the per capita consumption maximization problem reduces to one dimensional parametric maximization problem. We propose a new finite method for solving the problem using Lipschitz condition. Some test problems have been solved numerically.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
David Romer, Advanced Macroeconomics, University of California, Berkeley, 1996.
R.Enkhbat, Quasiconvex Programming, Lambert Publisher, Germany, 2009.
R.Enkhbat, D.Bayanjargal and A.Griewank, Global Optimization Approach to the Solow Growth Theory, Advanced Modeling and Optimization, An Electronic International Journal, pp.133–140, Vol.12, Number 2, 2010.
H.Gregory Mankiw, Macro Economics, Harvard University, Worth Publisher, New York, 2010.
R.Horst, Panos M.Pardalos and N.Thoai, Introduction to Global Optimization, Dordrecht, The Netherlands, 1995.
Robert M.Solow, A Contribution to the Theory of Economic Growth, Quarterly Journal of Economics, (The MIT Press)70(1):65–94, 1956.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2013 Springer Science+Business Media New York
About this chapter
Cite this chapter
Enkhbat, R., Bayanjargal, D. (2013). Parametric Optimization Approach to the Solow Growth Theory. In: Chinchuluun, A., Pardalos, P., Enkhbat, R., Pistikopoulos, E. (eds) Optimization, Simulation, and Control. Springer Optimization and Its Applications, vol 76. Springer, New York, NY. https://doi.org/10.1007/978-1-4614-5131-0_12
Download citation
DOI: https://doi.org/10.1007/978-1-4614-5131-0_12
Published:
Publisher Name: Springer, New York, NY
Print ISBN: 978-1-4614-5130-3
Online ISBN: 978-1-4614-5131-0
eBook Packages: Mathematics and StatisticsMathematics and Statistics (R0)