On uniform convergence of undiscounted optimal programs in the Mitra–Wan forestry model: The strictly concave case

Authors


  • This work was initiated during Piazza's visit to Johns Hopkins in May 2008 and completed during Khan's visit to the National University of Singapore in July–December 2008. The authors acknowledge invaluable correspondence with Tapan Mitra as well as his generosity in making his unpublished work available to us, the encouragement of Alejandro Jofré, and the comments of an anonymous referee. Adriana Piazza gratefully acknowledges the financial support of Programa Basal PFB 03, Centro de Modelamiento Mathemático, Universidad de Chile and that of FONDECYT under projects 3080059 and 11090254.

Abstract

In this paper, we show that the 1986 Mitra–Wan result establishing asymptotic convergence of maximal programs to the unique golden-rule forest in the case of undiscounted, strictly concave felicity functions can be strengthened, in the same setting, to the uniform asymptotic convergence of optimal programs to the unique golden-rule forest. We work with a notationally reformulated version of the model that may have independent interest.

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