Akshay Shanker

I am a research economist and a Research Fellow at the School of Economics and Center for Population and Ageing Research (CEPAR) at the University of News South Wales, Sydney

I work on the mathematics, theory and computation of high dimensional economics and optimization, particularly involving dynamics (time)

Contact: akshay dot shanker at me dot com

Working papers

Optimal saving and work hours in the neoclassical growth model with heterogeneous agentsA constrained planner planner accumulates more aggregate capital and reduces hours worked. However, the rich are asked to work more, since they are more productive while the poor work less. On the other hand, the rich also save more — the resulting fall in interest rates and rise in wages achieves a redistribution from rich to poor thorough prices.
Existence of recursive constrained optima in the heterogeneous agent neoclassical growth modelA constrained cannot complete insurance markets and thus faces an infinite horizon optimization problem with an infinite dimensional state space. Finite dimensional topological notions do not readily carry over to infinite dimensional spaces and the planner’s problem does not satisfy the standard conditions of dynamic optimization theory. This paper addresses the infinite dimensional non-compactness and shows a planner’s solution still exists.
Energy Intensity, directed technological change and economic growth, with Prof. David SternEnergy intensity declines due to energy augmenting technical change. However, energy intensity declines slower than output grows; this is because energy is more abundant than labour and firms find it more profitable to do labor saving research.

Research in progress

Stability of electricity spot markets with intermittent energy and battery storage, with Chandra Krishnamurthy and David SternThis paper examines the dynamics of electricity markets where supply is random (solar and wind) but speculators can buy, store and sell energy