Abstract

The paper presents a production system in the Debreu model of general equilibrium. According to Schumpeter, economic development is possible only on the strength of innovations being introduced. This process provides a sequence of optimal production plans, corresponding to each stage of the innovative evolution. The paper characterises the sequence of optimal plans and provides the conditions for its convergence. Moreover, the limiting production plan is shown to be the producer’s optimum in the final state.

Full Text
Paper version not known

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.