# Tag Info

Accepted

### Why should time-subscript notation be avoided in Bellman equations?

Here is the general intuition: 1. Finite Horizon Case It is necessary to include the time subscript here because $V_t(k_t)$ and $V_{t+1}(k_{t+1})$ have different number of time periods ahead of them. ...
• 923
Accepted

### A derivative with respect to Euclidean distance?

As Herr K. pointed out, if you write $\frac{du(g)}{dg}$, then $u$'s domain has to be $\mathbb{R}^+$ and $x,z$ have to be real numbers. You'd rather ask: When $u : \mathbb{R}^+ \to \mathbb{R}^+$ ...
• 76
1 vote

### Why are production functions linear in technology?

It is important to note that technology is an abstract concept and cannot be measured in concrete units, but simply with a positive scalar magnitude (the greater the technical development, the greater ...
• 150