Jürgen Antony, Alfred Maussner

A further note on a new class of solutions to dynamic programming problems arising in economic growth


Abstract:

This note extends the finding of Benhabib and Rusticchini (1994) who provide a class of SDGE models, whose solution is characterized by a constant savings rate. We show that this class of models may be interpreted as a standard representative agent SDGE model with costly adjustment of capital and provides a solution to the traditional discrete time Ramsey problem.

JEL: C61, C68, E21, O4

Paper:

Paper available as pdf-file. Beitrag Nr. 297, Volkswirtschaftliche Diskussionsreihe, Institut für Volkswirtschaftslehre der Universität Augsburg

Contact:

Jürgen Antony
email: juergen.antony@wiwi.uni-augsburg.de
Alfred Maussner, University of Augsburg, Department of Economics, D-86135 Augsburg, Germany, phone +49-821-598-4188, fax +49-821-598-4231,
email: alfred.maussner@wiwi.uni-augsburg.de


v. K., 10.01.2008