Undiscounted optimal growth with consumable capital and capital-intensive consumption goods

► Uses Euclidean geometry to characterize the optimal policy in a two sector undiscounted growth model. ► Extends the Leontief framework to include consumable capital and capital intensive consumption good. ► If initial capital stock is below a threshold level, there is no convergence to the golden rule stock. ► An economy with a low level of capital produces only investment goods. ► An economy with a high level of capital produces only consumption goods.