OPTIMAL TRAJECTORIES IN REPRODUCTION MODELS OF ECONOMIC DYNAMICSS.I. HAMIDOV (pp. 16-24)
Abstract.A reproduction model with Leontief type production functions is considered. The production mapping of such model is usually given by superlinear multivalued mappings. We consider effective model trajectories, and we use lossless equilibrium mechanism to construct such trajectories. We find the characteristics of effective trajectories and we show that the consumption problem reaches its maximum on effective trajectories. We also find the conditions under which it is impossible to construct an effective trajectory using lossless equilibrium mechanism.
Keywords:reproduction model, lossless equilibrium mechanisms, characteristics..