Abstract
For a one sector model with the planner’s preferences given by a sum of one period concave utility functions with arbitrary time dependence and production conditions given by concave production functions with completely general technical change we show: (i) in an optimal T period program an increase in final stock requirements implies investments must be increased in every period, (ii) optimal T period programs with no final stock requirements converge to a limit program as T→∞,and (iii) a sharp bound, \( \bar b \) ,is given on final stock requirements, b,such that if \( b < \bar b \) ,optimal T period programs with final stocks, b converge to the limit program of (ii) as T→∞.
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