Differentiability of the value function of nonclassical optimal growth models

We consider an optimal growth (multi-sector) model with nonconvex technology. Using the Clarke results on generalized gradients, we prove that the value function has left and right derivatives with respect to the initial capital stock, without requiring supermodularity assumptions.

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Bibliographic Details
Published in:Journal of optimization theory and applications 1998-06, Vol.97 (3), p.591-604
Main Authors: ASKRI, K, LE VAN, C
Format: Article
Language:English
Subjects:
Applied sciences
Economics
Exact sciences and technology
General aspects
Growth models
Operational research and scientific management
Operational research. Management science
Optimization. Search problems
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Description
Summary:We consider an optimal growth (multi-sector) model with nonconvex technology. Using the Clarke results on generalized gradients, we prove that the value function has left and right derivatives with respect to the initial capital stock, without requiring supermodularity assumptions.
ISSN:0022-3239
1573-2878
DOI:10.1023/A:1022690009338