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Is the Neoclassical Growth Economy a Market Economy?
Journal of Contextual Economics – Schmollers Jahrbuch, Vol. 101 (1981), Iss. 4 : pp. 441–443
Reinhardt, Paul G.
Continuous time enters the growth model throught the stability requirements on the model. Its presence creates a problem of transforming the transaction price of the good, which can only be a price of physical units of the good at a point in time, into the price of a flow of the same good across time, as it enters into a transactor's decision, at a point in time. Growth models treat these prices as interchangable. The present paper tries to show that these prices diverge in the growth model.
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