Questions tagged [ramsey]
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Ramsey no ponzi condition
Please help me understand how to create these functions, sometime they use "t" denote, sometime use "r" denote that make me feel confuse. Function (17) and from (19) to (23)
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Ramsey model problem
Explain the no-Ponzi game condition throughout the function.
Does the constrain function: also reflect include the No-Ponzi condition?
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Ramsey model condition
Why are transversality conditions and no-ponzi game conditions needed in the Ramsey model? And why do we assume that is a CIES utility function?
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How is the constrained maximization problem in the Ramsey model solved?
Assuming that utility is forward discounted $ \rho $, lifetime utility = $ \int_{0}^{\infty} e^{-\rho t}u(c) \,dt $.
And in continuous time, we also know that $ \dot{k} = y - (\delta + n)k - c$.
...
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Integral in front of utility function
I have a problem understanding the integral in front of the modified Ramsey problem of the DICE model. So U the utility of one household is determined by u(c) the instantaneous utility and the rest of ...
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Effect of shock to technology level in the Ramsey model
My instructor said that the answer I wrote below is not correct without any explanation. But I dont know why. I need to learn its correct answer. Please share your ideas with me.
I asked the same ...
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Question on Ramsey model with shock on technological level
I have a question on Ramsey Model.
Consider the following one-sector, closed, representative household economy.
I have the following Cobb Douglas production function in intensive form
$$f(k)=Ak(t)^{\...
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Does a neoclassical production with constant returns to scale implies type of Cobb-Douglas
Assume the neoclassical production function $$F(K,L)\colon [0,\infty) \times [0,\infty) \to [0,\infty)$$ twice continuously differentiable, i.e., F is montone increasing and concave, i.e.,
$$
\partial ...
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Ramsey model with government
I have a problem with an introduction a government to Ramsey model. For example, there is a capital income tax and government returns the revenue from this tax through lump-sum transfers. What will ...
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Proof of Saddle-Path Stablility in Ramsey-Cass-Koopmans model
I'm currently struggling to proof the saddle-path stability in the Ramsey-Cass-Koopmans model. Based on the books Introduction to Modern Economic Growth by D. Acemoglu (chapter 7 and 8) and ...
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How to derive a general relationship between the Ramsey-Keynes rule and the law of motion for capital?
Consider a representative agent model where the representative agent has standard preferences
$\int^{\infty}_te^{-\rho t}ln(c(t))dt$
where $\rho>0$ and $c(t)$ is consumption in period t as usual. ...
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Stochastic Optimization
I am working on a Data Panel project that is about macro volatility, taking into consideration some quality indicators. According to my model, indicators definitely determine macro variables. Data are ...
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Modern descendants of Frank Ramsey's paper "A Mathematical Theory of Saving"?
I haven't studied economics, but I'm interested in applied ethics, and I came across Frank Ramsey's paper "A Mathematical Theory of Saving". I thought his application of calculus to a ...
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Utility function in Ramsey-Cass-Koopmans model
We are studying Ramsey-Cass-Koopmans model (RCK) in my macro course, I am already stuck in the starting section on assumptions of the model. In particular, I do not quite understand why the ulitity ...
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Is the Ramsey model one with non negative investment?
I have a very fundamental question. I am currently searching for an economic growth model with non negative investment. Can someone tell me if the Ramsey model is one with non negative investment and ...
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Are business cycle fluctuations usually studied in a (New Keynesian) DSGE model, or can they also be studied in a growth model?
I wonder if business cycle fluctuations are usually studied in a (New Keynesian) DSGE model, or can they also be studied in a growth model?