About the Speaker:

Professor Khan is Abram Hutzler Professor of Economics at the Johns Hopkins University. He is currently a Goh Keng Swee Visiting Professor at the National University of Singapore. In the last few years he has been a Visiting Professor at Cornell University, Universite de Paris 1 Pantheon-Sorbonne and the Universidad de Chile. He has consulted extensively for the World Bank and the International Food Policy Research Institute. He is in the Editorial Board of the Pakistan Development Review, Journal of Mathematical Economics, Economic Theory (1990-92), Pacific Economic Review, Japanese Economic Review, Review of Development Economics, Journal of Economic Integration, Journal of Public Economic Theory and the International Journal of Economic Theory. He has published extensively, including papers in Econometrica, Quarterly Journal of Economics, Journal of Economic Literature, International Economic Review and the Review of Economic Studies, and he is the author, editor or co-editor of many books.

Abstract:

In earlier work, the authors have presented a complete characterization of Stiglitz policies for the RSS model in an undiscounted setting with linear felicity functions: Such policies are optimal when a suitably defined sufficient statistic, the marginal rate of transformation of capital from one period to the next with zero consumption, is greater than or equal to unity, uniquely optimal when it is less than one, and bad when it is greater than unity. It has been an open question as to what are the optimal policies when Stiglitz policies are bad, and in this paper, we give a complete characterization of optimal programs in this case. Our solution draws on the recently developed theory of undiscounted dynamic programming for the RSS model.

Reservation:

Admission is free.  Please reply to Christina, e-mail: achristina@ntu.edu.sg or Tel: 6790-5689 to confirm your attendance.