Have we missed the right version of the Ramsey model?
AbstractUnexpectedly, 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 InfoPaper provided by University Library of Munich, Germany in its series MPRA Paper with number 50302.
Date of creation: 2013
Date of revision:
Ramsey model; Optimal Growth; Optimal control; Savings decision;
Find related papers by JEL classification:
- D5 - Microeconomics - - General Equilibrium and Disequilibrium
- D91 - Microeconomics - - Intertemporal Choice - - - Intertemporal Household Choice; Life Cycle Models and Saving
- E1 - Macroeconomics and Monetary Economics - - General Aggregative Models
- E2 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment
- O41 - Economic Development, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - One, Two, and Multisector Growth Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2013-10-02 (All new papers)
- NEP-MAC-2013-10-02 (Macroeconomics)
- NEP-UPT-2013-10-02 (Utility Models & Prospect Theory)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Heng-fu Zou, 1991.
"The spirit of capitalism and long-run growth,"
Policy Research Working Paper Series
630, The World Bank.
- Heng-fu Zou, 1995. "'The spirit of capitalism' and long-run growth," CEMA Working Papers, China Economics and Management Academy, Central University of Finance and Economics 94, China Economics and Management Academy, Central University of Finance and Economics.
- Dorfman, Robert, 1969. "An Economic Interpretation of Optimal Control Theory," American Economic Review, American Economic Association, American Economic Association, vol. 59(5), pages 817-31, December.
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