Sensitivity of optimal paths with respect to horizon length in a nonstationary multisector growth model

Abstract

In the paper we present some results on convergence properties of optimal programs of growth in a multisector growth model context. There is no need for convexity or monotonicity of production mappings though we impose continuity in product topology on intertemporal social utility function. We show that if final stock is sustainable then sensitivity and continuity of optimal growth paths hold - both in investment and consumption. We apply our results to a simple multisector Leontief growth model with consumption and discounted utility. (original abstract)