On the Relative Stability and Optimality of Consumption in Aggregative Growth Models

In an article in this journal, Professor Sengupta investigated the behaviour of optimal growth paths in a model of the Ramsey type [2].1 In our view this article is marred by flaws, the most serious of which is that Sengupta goes through mathematical manipulations without properly defining the problem he is tackling. In particular, the meanings to be attached to the important symbols T, t--T, and lim, are t-.T not clear. Furthermore, whatever meanings one gives to them, inconsistencies remain in Sengupta's analysis. There are also some errors in the mathematics. In the following we examine the first three sections (pp. 33-38) of his article. We begin by recapitulating Sengupta's argument. Sengupta's specification of the model is as follows.2 The system maximizes the utility functional3'4

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• On the Relative Stability and Optimality of Consumption in Aggregative Growth Models

  Dionysius Glycopantis•Economica•1973

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• On the Relative Stability and Optimality of Consumption in Aggregative Growth Models

  Jati K Sengupta•Economica•1964

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