Global stability and the "turnpike" in optimal unbounded growth models

Martin Jensen

Research output: Contribution to journalArticle

2 Citations (Scopus)


This study proves various global stability results for unbounded optimal growth models. The main theorem states that any optimal path will eventually be in the neighborhood of a balanced growth path if future utility is sufficiently weakly discounted. The assumptions allow for non-smooth technologies, joint production, and production in independent sectors. Hence, the results form the integration of new growth and turnpike theory sought by McKenzie (1998) [31] in his Ely lecture. The applicability of the results is exemplified by means of a number of cases from growth theory and other areas of economics. (C) 2010 Elsevier Inc. All rights reserved.
Original languageEnglish
Pages (from-to)802-832
Number of pages31
JournalJournal of Economic Theory
Issue number2
Publication statusPublished - 1 Mar 2012


  • Global stability
  • Balanced growth path
  • New growth theory
  • Homogeneous programming
  • von Neumann equilibrium
  • Turnpike
  • Optimal growth


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