Questions tagged [ramsey]

The tag has no usage guidance.

Filter by
Sorted by
Tagged with
0 votes
0 answers
23 views

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)
Huy Lê Thanh's user avatar
0 votes
1 answer
35 views

Ramsey model problem

Explain the no-Ponzi game condition throughout the function. Does the constrain function: also reflect include the No-Ponzi condition?
Huy Lê Thanh's user avatar
1 vote
1 answer
81 views

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?
Huy Lê Thanh's user avatar
1 vote
0 answers
46 views

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$. ...
user43188's user avatar
1 vote
1 answer
101 views

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 ...
BlankerHans's user avatar
1 vote
2 answers
519 views

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 ...
studentp's user avatar
  • 120
2 votes
0 answers
416 views

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)^{\...
studentp's user avatar
  • 120
2 votes
1 answer
305 views

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 ...
maximilian43's user avatar
1 vote
0 answers
107 views

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 ...
wtfvba's user avatar
  • 11
5 votes
1 answer
335 views

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 ...
freakonomist's user avatar
2 votes
1 answer
137 views

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. ...
Denis Dinand's user avatar
0 votes
0 answers
71 views

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 ...
MarioF's user avatar
  • 11
2 votes
1 answer
100 views

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 ...
tormad's user avatar
  • 23
1 vote
1 answer
382 views

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 ...
user30845's user avatar
0 votes
2 answers
98 views

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 ...
Jan Kreischer's user avatar
2 votes
1 answer
32 views

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?
Beck Batucada's user avatar