On the Optimal Control of the Vintage Capital Growth Model with Endogenous Labour Supply

Raouf Boucekkine (1) , Natali Hritonenko (2) , Yuri Yatsenko (3)

1 GREQAM - Groupement de Recherche en Économie Quantitative d'Aix-Marseille
2 Prairie View
3 School of business, Houston Baptist University

We prove that the introduction of endogenous indivisible labor supply into the vintage capital growth model does not rule out the turnpike and optimal permanent regime properties, notably the non-monotonicity properties of optimal paths, inherent in this model.

Keywords: endogenous labor supp; integral equations with delays and advances; Optimal control; Vintage capital

Domains: Humanities and Social Sciences; Humanities and Social Sciences; Economics and Finance

Raouf Boucekkine, Natali Hritonenko, Yuri Yatsenko. On the Optimal Control of the Vintage Capital Growth Model with Endogenous Labour Supply. Mathematical Economics Letters, 2013, 1 (1), pp.3--7. ⟨10.1515/mel-2013-0001⟩. ⟨hal-01498250⟩