ABSTRACT
The paper presents the main results on intertemporal optimality with discounting in a closed linear model of production, including the price characterization of optimal programs, the existence of a steady-state optimal program, and a turnpike property of optimal programs from arbitrary initial stocks. Some of these results are used to provide a characterization of the optimality of competitive programs in terms of a “decentralizable” condition. Journal of Economic Literature Classification Number: 111. © 1988 Academic Press, Inc.
