<abstract xmlns="http://www.w3.org/1999/xhtml">

<p>This article presents a multiproduct model of a non-stationary Gale-type economy with technology convergent to a certain limit technology, in which changes in the production technology (the dynamics of Gale production spaces) are governed by the size of investments. Thus, this model differs from the vast majority of Gale-type models considered in mathematical economy. With this assumption, the so-called “very strong” version of the multilane production turnpike theorem in the Gale economy with investments is proved. According to the theorem, if the optimal growth process in such an economy reaches the multilane turnpike, it remains on it from then on, with the possible exception of the last period of the economic horizon being analysed.</p>
</abstract>

This article presents a multiproduct model of a non-stationary Gale-type economy with technology convergent to a certain limit technology, in which changes in the production technology (the dynamics of Gale production spaces) are governed by the size of investments. Thus, this model differs from the vast majority of Gale-type models considered in mathematical economy. With this assumption, the so-called “very strong” version of the multilane production turnpike theorem in the Gale economy with investments is proved. According to the theorem, if the optimal growth process in such an economy reaches the multilane turnpike, it remains on it from then on, with the possible exception of the last period of the economic horizon being analysed.

“Very strong” turnpike effect in a non-stationary Gale economy with investments, multilane turnpike and limit technology

Economics and Business Review

This work is licensed under the Creative Commons Attribution 4.0 International License.

This article presents a multiproduct model of a non-stationary Gale-type economy with technology convergent to a certain limit technology, in which changes in...

“Very strong” turnpike effect in a non-stationary Gale economy with investments, multilane turnpike and limit technology

Published Online: Jan 26, 2024

Page range: 5 - 24

Received: Sep 10, 2023

Accepted: Dec 12, 2023

DOI: https://doi.org/10.18559/ebr.2023.4.891

Keywords
Gale economy with investments, von Neumann equilibrium, limit production space, technological and economic efficiency of production, multilane production turnpike, turnpike effect

© 2023 Emil Panek, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

“Very strong” turnpike effect in a non-stationary Gale economy with investments, multilane turnpike and limit technology

Published Online: Jan 26, 2024

Page range: 5 - 24

Received: Sep 10, 2023

Accepted: Dec 12, 2023

DOI: https://doi.org/10.18559/ebr.2023.4.891

KeywordsGale economy with investments, von Neumann equilibrium, limit production space, technological and economic efficiency of production, multilane production turnpike, turnpike effect

© 2023 Emil Panek, published by Sciendo

This work is licensed under the Creative Commons Attribution 4.0 International License.

Keywords
Gale economy with investments, von Neumann equilibrium, limit production space, technological and economic efficiency of production, multilane production turnpike, turnpike effect