Abstract
On the Optimal Growth of Uzawa Paths. — In a number of recent works optimal growth paths are stated by the classical calculus of variations. In this paper we want to discuss the problems which occur in finding optimal growth paths by the help of the classical calculus of variations. You will find two critical aspects for the well-known growth model of Uzawa. First, by the calculus of variations not all possible economic restrictions are fully covered, so that the possibilities of economic interpretation of the results are not guaranteed uniquely. The results may be, for instance, negative. Secondly, the result found by Uzawa is — respecting the given aims — in no case optimal. The same may be stated to the model of Konig. Therefore the calculus of variations is characterized as a problematical method of finding optimal economic growth paths. On the contrary the maximum principle promises by its mere formulation a higher efficiency.
Sign-in/Register to access full text options 
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
