Undiscounted optimal growth in the two-sector Robinson-Solow-Srinivasan model: a synthesis of the value-loss approach and dynamic programming (Q2509138)

The paper investigates two approaches to problems of optimal intertemporal allocation of resources. First, the authors use the value-loss approach of Radner-Gale-McKenzie to show a multiplicity of optimal programs in situations when optimality does not coincide with value-loss minimization. They use a theory of undiscounted dynamic programming, not available in the literature, to derive properties of the optimal policy correspondence. In terms of a methodological perspective, they suggest a synthesis of the two methods for the analysis of problems of optimal intertemporal resource allocation.