Von Neumann Rays and Golden Rules: An Integrated View of Intertemporal Production Models
A dichotomy is developed between Solow-Phelps type models which exhibit golden rules and von Neumann type models. In particular, it is shown that models which do not possess golden rule programs, always possess von Neumann rays and vice versa. The determining factor is how important exogenous resources are in production. The two different models have quite different implications for economic efficiency, and some of these are discussed.
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