Inada_conditions
In macroeconomics, the Inada conditions, named after Japanese economist Ken-Ichi Inada,[1] are assumptions about the shape of a function, usually applied to a production function or a utility function. When the production function of a neoclassical growth model satisfies the Inada conditions, then it guarantees the stability of an economic growth path. The conditions as such had been introduced by Hirofumi Uzawa.[2]
This article may be too technical for most readers to understand. (August 2017) |