Abstract
In this paper, we study the stability of two types of Invariant Capital Stocks which are shown to exist in a two-dimensional planning model. It is shown that, for each type of Invariant Capital Stock, there is a critical discount factor such that when the discount factor falls below it, the corresponding Invariant Capital Stock will become unstable.
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Chung, CS. On the stability of Invariant Capital Stock in a two-dimensional planning model. Mathematical Programming 34, 201–211 (1986). https://doi.org/10.1007/BF01580584
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DOI: https://doi.org/10.1007/BF01580584