Optimal investment allocation in decentralized markets

Autor:	Ricardo Azevedo Araujo Correio, Helmar Nunes Moreira
Jazyk:	portugalština
Rok vydání:	2015
Předmět:	investment allocation two sector models dynamic optimization Economic history and conditions HC10-1085 Economics as a science HB71-74
Zdroj:	Revista de Economia Mackenzie, Vol 12, Iss 1, Pp 200-223 (2015)
Druh dokumentu:	article
ISSN:	1678-5002 1808-2785
Popis:	This paper makes three contributions to the Feldman-Mahalanobis (F-M) model. First, it overcomes the limitation of the original model, which assumes a passive role of consumption demand, by extending the F-M model through the introduction of intertemporal maximization of consumption. Second, it shows that decentralized markets can mimic the dynamic behavior of the centrally planned economy with two sectors, consumption and investment goods. This is accomplished by using Cobb-Douglas production functions in both sectors. Third, in contrast with the F-M model in which the solutions are unstable, this paper proves the stability of the steady state solutions
Databáze:	Directory of Open Access Journals
Externí odkaz:	https://doaj.org/article/087bbdf0407c425eab8f4e57add38b5e Zobrazit plný text záznamu View record in DOAJ