The Discrete-Time Ramsey Model with a Decreasing Population Growth Rate
Author | : Juan Gabriel Brida |
Publisher | : |
Total Pages | : 16 |
Release | : 2015 |
ISBN-10 | : OCLC:1306445331 |
ISBN-13 | : |
Rating | : 4/5 ( Downloads) |
Download or read book The Discrete-Time Ramsey Model with a Decreasing Population Growth Rate written by Juan Gabriel Brida and published by . This book was released on 2015 with total page 16 pages. Available in PDF, EPUB and Kindle. Book excerpt: This paper studies an extension of the Ramsey growth model of optimal capital accumulation in discrete time by departing from the standard assumption of constant population growth rate. More concretely, this rate is assumed to be decreasing over time and a general population growth law with this characteristic is introduced. In this setup, the model can be represented by a three dimensional dynamical system which admits a unique solution characterized by the Euler equation. It is shown that there is a unique nontrivial equilibrium which is a saddle point. In addition, the speed of convergence to the steady state is characterized.