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- W2324879073 abstract "MR. A. MANESCHI'S interesting note on my paper published in this Review in September 1962 suffers from a misconception regarding purpose of paper. He devotes one section of note a criticism of what he considers be five specific justifications advanced by me in favor of using finite horizon models planning purposes. Apart from merits of Mr. Maneschi's own observations which I take up later, I should like point out that the purpose of quote from paper itself, was to draw out implications of a finite horizon optimal savings programs (p. 339). Thus I was concerned with analysis rather than with justification. However, I did say earlier in same paragraph and, as quoted in Maneschi's note, that for purposes finite horizon, sufficiently large, is deemed adequate, provided future is taken care of by leaving some capital at end of period under consideration. But this sentence is only a part of a complete statement which needs be quoted here in full together with preceding two sentences clarify context. The relevant part of paragraph from which sentence was taken is following: In this paper we propose sidetrack difficulties of an infinite program by considering only plans extending over only a finite number of time periods. From a logical point of view, this is not a satisfactory approach unless we can show that program optimal finite time tends in limit an optimal program on some relevant definition of order. Despite this logical shortcoming, arising from fact that such a limit does not exist, purposes a finite horizon, sufficiently large, is deemed adequate, provided future is taken care of by leaving some capital at end of period under consideration. To sum up, I said that if there was a justification finite horizon models, justification was chiefly of a nature. It may be instructive at this stage analyze what practical would mean in this context. I think that there are several distinct issues implied here. Briefly stated, if in absence of uncertainty there is no natural cut off point in time, as I mentioned explicitly in paper, correspondence between logic and practice requires that we should be careful" @default.
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- W2324879073 date "1966-01-01" @default.
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- W2324879073 title "Optimal Savings with Finite Planning Horizon: A Reply" @default.
- W2324879073 doi "https://doi.org/10.2307/2525375" @default.
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