Fondation HEC Seminar joint with the Chair in game theory and management and GERAD

Title: The impact of adaptation on the stability of international environmental agreements 

Speaker:  Lucia Sbragia – Durham University Business School, UK

We study a non-convex optimal growth problem with investment enhancing labor. We prove that there exists an optimal growth path, which all optimal paths are interior and we provide a condition under which at least one of them is monotonic. We also study the existence and uniqueness of the steady state. We show in particular that a rise in the efficiency of the investment enhancing labor does not necessarily lead to an increase in the steady state value of this labor. Furthermore we provide a complete study of the dynamics of the optimal solution in the special case of a logarithmic utility function and a Cobb-Douglas production function.

---

Free entrance. Welcome to everyone!