The Econometric SocietyEdited by: Guido W. Imbens • Print ISSN: 0012-9682 • Online ISSN: 1468-0262
Econometrica: Jul, 1995, Volume 63, Issue 4
https://doi.org/0012-9682(199507)63:4<981:NDACIO>2.0.CO;2-3
p. 981-1001
Kazuo Nishimura, Makoto Yano
This study demonstrates the possibility of ergodically chaotic optimal accumulation in the case in which future utilities are discounted arbitrarily weakly. For this purpose, we use a two-sector model with Leontief production functions and construct a condition under which the optimal transition function is unimodal and expansive. We demonstrate that the set of parameter values satisfying that condition is nonempty no matter how weakly the future utilities are discounted.
