Envelope theorem in dynamic economic models with recursive utility Articles uri icon

publication date

  • February 2018

start page

  • 10

end page

  • 12

volume

  • 163

international standard serial number (ISSN)

  • 0165-1765

electronic international standard serial number (EISSN)

  • 1873-7374

abstract

  • This paper investigates the first-order differentiability properties of the value function in dynamic economic models with recursive preferences where the optimal policy may lie at the boundary of the feasible set under several regular assumptions originating from the static optimization theory plus, an additional asymptotic condition. (C) 2017 Elsevier B.V. All rights reserved.

keywords

  • First-order differentiability
    Dynamic economic models
    Recursive utility