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

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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.

Suggested Citation

  • Juergen Antony & Alfred Maussner, 2008. "A further note on a new class of solutions to dynamic programming problems arising in economic growth," Discussion Paper Series 297, Universitaet Augsburg, Institute for Economics.
    • Handle: RePEc:aug:augsbe:0297
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    File URL: https://vwl.wiwi.uni-augsburg.de/vwl/institut/paper/297.pdf
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    1. Benhabib, Jess & Rustichini, Aldo, 1994. "A note on a new class of solutions to dynamic programming problems arising in economic growth," Journal of Economic Dynamics and Control, Elsevier, vol. 18(3-4), pages 807-813.
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    More about this item

    Keywords

    capital and labor substitution; dynamic programming; growth; numerical solutions of SDGE models;
    All these keywords.

    JEL classification:

    • C61 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Optimization Techniques; Programming Models; Dynamic Analysis
    • C68 - Mathematical and Quantitative Methods - - Mathematical Methods; Programming Models; Mathematical and Simulation Modeling - - - Computable General Equilibrium Models
    • E21 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Consumption; Saving; Wealth
    • O4 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity

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