New Approach to the Ramsey Model

Authors

  • Sergei Aliukov
  • Vladimir Gorshenin

Abstract

In this paper it is suggested a new approach to the Ramsey model with the Constant Relative Risk Aversion (CRRA) utility function and Cobb-Douglas technology. The suggested approach allows finding a steady state which is new and unknown before. It is proved that the found steady state is stable. With help of the method of a small parameter analytical solution of the model has been obtained. Some opportunities for improving the obtained analytical solution are suggested. It is shown that transversely condition, which is a component part of the Rumsey model, holds true for the new approach.

DOI: 10.5901/mjss.2015.v6n6p284

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Published

2015-11-02

Issue

Vol. 6 No. 6 (2015): November 2015

Section

Articles

License

Creative Commons License

This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.

How to Cite

New Approach to the Ramsey Model. (2015). Mediterranean Journal of Social Sciences, 6(6), 284. https://www.richtmann.org/journal/index.php/mjss/article/view/7943