Dynamic Programming with Homogeneous Functions

  title={Dynamic Programming with Homogeneous Functions},
  author={Fernando {\'A}lvarez and Nancy L. Stokey},
  journal={Journal of Economic Theory},
Abstract We show that the basic existence, uniqueness, and convergence results of dynamic programming hold when the return function is homogeneous of degreeθ⩽1 and the constraints are homogeneous of degree one.Journal of Economic Literature ClassificationNumber: C61. 
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