Economics and Business Review

ISSN 2392-1641
e-ISSN 2450-0097

Poznań University of Economics - Poland

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Volume 1 (15) Number 4 pp. 3-13

Emil Panek

Poznań University of Economics Review, Poznań, Poland

A turnpike theorem for a non-stationary Gale economy with limit technology. A particular case

Abstract:
This paper is a continuation of the work by Panek [2013a], [2013b] and Panek and Runka [2011], with direct reference to [2013b]. The difference between this paper and paper [2013b] reveals when applying a different optimality criterion with the help of which growth processes are assessed. The optimality criterion in [2013b] is the value of production in the last period of a fixed planning horizon T = {0, 1, …, t1}
measured in von Neumann equilibrium prices. In this paper we take the total value of output (also measured in von Neumann prices) produced in the whole horizon T as a growth criterion. The aim of the paper is to prove that a change of growth criterion does not deprive the economy of its turnpike properties. It was pointed out that a Gale economy with a changeable technology convergent to the limit technology also preserves
similar properties if we accept the social utility function (with standard properties) as a growth criterion.
The paper consists of three sections. In Section 1 we present a non-stationary Galetype model with a limit technology. Section 2 contains proof of the so-called ‘weak’ turnpike theorem, whilst in Section 3 we prove a ‘strong’ version of the turnpike theorem for the economy under investigation. The paper closes with final comments.
pub/2015_4_3.pdf Full text available in in Adobe Acrobat format:
http://www.ebr.edu.pl/volume15/issue4/2015_4_3.pdf
Keywords: non-stationary Gale economy, limit technology, von Neumann equilibrium, turnpike.

DOI: 10.18559/ebr.2015.4.1

For citation:

MLA Panek, Emil. "A turnpike theorem for a non-stationary Gale economy with limit technology. A particular case." Economics and Business Review EBR 15.4 (2015): 3-13. DOI: 10.18559/ebr.2015.4.1
APA E., P. (2015). A turnpike theorem for a non-stationary Gale economy with limit technology. A particular case. Economics and Business Review EBR 15(4), 3-13 DOI: 10.18559/ebr.2015.4.1
ISO 690 PANEK, Emil. A turnpike theorem for a non-stationary Gale economy with limit technology. A particular case. Economics and Business Review EBR, 2015, 15.4: 3-13. DOI: 10.18559/ebr.2015.4.1