Questions tagged [ramsey]

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Ramsey model and the steady state

Following Barro's book about the Ramsey Model, when we work with variables expressed in units per effective labor we end up with the following system of 2 differential equations \begin{equation} \frac{...
Maximilian's user avatar
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Sustained growth in Ramsey model

It is known that in the classical Solow model that if we use CES production function instead of Cobb Douglas function, it is possible to have sustained growth if the substitutability is larger than 1. ...
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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)
Huy Lê Thanh's user avatar
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1 answer
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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?
Huy Lê Thanh's user avatar
1 vote
1 answer
132 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
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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$. ...
user43188's user avatar
1 vote
1 answer
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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 ...
BlankerHans's user avatar
1 vote
2 answers
674 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
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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 ...
maximilian43's user avatar
1 vote
0 answers
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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 ...
wtfvba's user avatar
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1 answer
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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 ...
freakonomist's user avatar
2 votes
1 answer
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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. ...
Denis Dinand's user avatar
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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 ...
David K's user avatar
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2 votes
1 answer
106 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
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1 vote
1 answer
445 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
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2 answers
102 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