Solution to an open question about optimal economic growth models

Abstract

We prove that if the total factor productivity A of an aggregative economy is right at the barrier , with σ being the growth rate of labor force and λ the real interest rate, then the unique policy to optimally control the economy is the same as the one for optimally controlling weak economies, where . This result gives a complete answer for the interesting open question raised by Vu Thi Huong in her recent paper [Optimal economic growth problems with high values of total factor productivity. Appl Anal. 2022;101:1315–1329].