Envelope theorem in dynamic economic models with recursive utility

Rincón-Zapatero, Juan Pablo; Zhao, Yanyun

Envelope theorem in dynamic economic models with recursive utility

Author(s): Rincón-Zapatero, Juan Pablo; Zhao, Yanyun

Publisher: Elsevier

Issued date: 2018-02-01

Citation: Rincón-Zapatero,J. P., Zhao, Y. (2018). Envelope theorem in dynamic economic models with recursive utility. Economics Letters, 163, pp. 10-12.

ISSN: 0165-1765

DOI: https://doi.org/10.1016/j.econlet.2017.11.018

xmlui.dri2xhtml.METS-1.0.item-contributor-funder: Ministerio de Economía y Competitividad (España)
Comunidad de Madrid

Sponsor: Support from the Ministerio de Economía y Competitividad (Spain), grants ECO 2014-56384-P, MDM 2014-0431, and Comunidad de Madrid, MadEco-CM S2015/HUM-3444 is gratefully acknowledged

Project: Gobierno de España. ECO2014-56384-P
Gobierno de España. MDM-2014-0431
Comunidad de Madrid. S2015/HUM-3444

Keywords: First-order differentiability , Dynamic economic models , Recursive utility

URI: http://hdl.handle.net/10016/34655

Rights: © Elsevier, 2018
Atribución-NoComercial-SinDerivadas 3.0 España

Abstract:

This paper investigates the first-order differentiability properties of the value function in dynamic economic models with recursive preferences where the optimal policy may lie at the boundary of the feasible set under several regular assumptions originating [+]

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