Gale Economy with Investments and Limit Technology

Abstract

In this article we have described a multiproduct model of economical
dynamics of Gale type, in which the changes in production technology (the
dynamics of Gale type production spaces) depend upon the scale of targeted
investments. Under such assumptions we have proved a so-called “weak”
version of a multilane turnpike theorem in the Gale type economy with varying
technology which converges to a certain limit technology. It states that in the
long periods of time, regardless of the initial state of the economy, the optimal
growth processes almost always lie close to the family of steady growth paths
with maximum growth rate called the multilane turnpike.