Proposition 4.1 Consider an AK economy with CEIS preferences and suppose that (B,0,4, satisfy B(1+4-6)>1>B(1+A-6)0-1.Then, the equilibrium is pareto efficient and the economy exhibits a balanced growth path Capital,output,and consumption all grow at a constant rate,which is given by [B (1 +4-5)] 1.And we have c=(1-s)(1+4-6)k k+1=S(1+A-δ)k, S=B(1+A-6)9- 电子科大经管学院马捷 Proposition 4.1 Consider an AK economy with CEIS preferences and suppose that (β, θ, A, δ) satisfy β (1 + A − δ) > 1 >βθ (1 + A − δ)θ-1 . Then, the equilibrium is pareto efficient and the economy exhibits a balanced growth path. Capital, output, and consumption all grow at a constant rate, which is given by [β (1 + A − δ)]> 1. And we have 电子科大经管学院 马捷 7 1 1 (1 ) (1 ) (1 )(1 )                   s A k s A k c s A k t t t t