To account for the development patterns that differ considerably among economies in the long run, a variety of one-sector models that incorporate some degree of market imperfections based on technological external effects and increasing returns have been presented. This paper studies the dynamic implications of, yet another mechanism, the endogenous rate of time preference depending […]

This paper analyses the optimal timing of switching between alternative and consecutive regimes in optimal growth model. We derive the appropariate necessary conditions for such problems by means of the standard techniques from calculus of variations and some basic properties of Sobolev space.