Assuming that u is strictly concave, show that the optimal growth model satisfies the requirements of exercise

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Assuming that u is strictly concave, show that the optimal growth model satisfies the requirements of exercise 2.126. Hence conclude that the optimal policy converges monotonically to a steady state.

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Foundations of Mathematical Economics

ISBN: 978-0262531924

1st edition

Authors: Michael Carter

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Question Posted: May 02, 2016 11:42 AM

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Assuming that u is strictly concave, show that the optimal growth model satisfies the requirements of exercise

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We observe that is supermodular in displays strictly increasing ...View the full answer

Foundations of Mathematical Economics

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