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Have we missed the right version of the Ramsey model?

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  • Khelifi, Atef

Abstract

Unexpectedly, and as a result of a simple exercise of intellectual curiosity, the resolution of the Ramsey growth problem with a Utility function underlying relative preferences for consumption and savings, provides remarkable results and interpretations. An advanced microeconomic analysis of this particular assumption which follows consequently, and presumably the sole one of the literature, appears to bring important new insights to the consumer theory, and to lead reasonably to the question of the validity of the current version of the Ramsey model.

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Bibliographic Info

Paper provided by University Library of Munich, Germany in its series MPRA Paper with number 50302.

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Date of creation: 2013
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Handle: RePEc:pra:mprapa:50302

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Keywords: Ramsey model; Optimal Growth; Optimal control; Savings decision;

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  1. Heng-fu Zou, 1995. "'The spirit of capitalism' and long-run growth," CEMA Working Papers 94, China Economics and Management Academy, Central University of Finance and Economics.
  2. Dorfman, Robert, 1969. "An Economic Interpretation of Optimal Control Theory," American Economic Review, American Economic Association, vol. 59(5), pages 817-31, December.
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