RT Generic
T1 Differentiability of the value function without interiority assumptions
A1 Rincón-Zapatero, Juan Pablo
A1 Santos, Manuel S.
A2 Universidad Carlos III de Madrid. Departamento de Economía, 
AB This paper studies first-order differentiability properties of the value function inconcave dynamic programs. Motivated by economic considerations, we dispense withcommonly imposed interiority assumptions. We suppose that the correspondence offeasible choices varies with the vector of state variables, and we allow the optimalsolution to belong to the boundary of this correspondence. Under minimal assumptionswe show that the value function is continuously differentiable. We then discuss thisresult in the context of several economic models.
SN 2340-5031
YR 2007
FD 2007-03
LK https://hdl.handle.net/10016/668
UL https://hdl.handle.net/10016/668
LA eng
DS e-Archivo
RD 18 may. 2024