Optimal development programs under uncertainty: The undiscounted case

Jeanjean, Patrick

Jeanjean, Patrick (1974), Optimal development programs under uncertainty: The undiscounted case, Journal of Economic Theory, 7, 1, p. 66-92. http://dx.doi.org/10.1016/0022-0531(74)90081-7

Type

Article accepté pour publication ou publié

Date

1974

Journal name

Journal of Economic Theory

Volume

Number

Publisher

Elsevier

Pages

66-92

Abstract (EN)

One considers a many-commodity world where technology depends on an exogenous environment whose successive states form a stationary Markov process. A program is optimal if it overtakes any other program or has the maximum expected utility. It is shown there exists a best stationary program. One proves then there exists an optimal program, which converges asymptotically to the best stationary program, and is generated by a policy such that, at every date, a nonrandom production decision is chosen which depends only on the state of the world and of the economy at that time.

Subjects / Keywords

optimal programs