IDEAS home Printed from https://ideas.repec.org/p/arx/papers/1511.07419.html
   My bibliography  Save this paper

Sustainability in the Stochastic Ramsey Model

Author

Listed:
  • Rabi Bhattacharya
  • Hyeonju Kim
  • Mukul Majumdar

Abstract

In this paper we provide a self-contained exposition of the problem of sustaining a constant consumption level in a Ramsey model. Our focus is on the case in which the output capital-ratio is random. After a brief review of the known results on the probabilities of sustaining a target consumption from an initial stock, we present some new results on estimating the probabilities by using Chebyshev inequalities. Some numerical calculations for these estimates are also provided.

Suggested Citation

  • Rabi Bhattacharya & Hyeonju Kim & Mukul Majumdar, 2015. "Sustainability in the Stochastic Ramsey Model," Papers 1511.07419, arXiv.org.
    • Handle: RePEc:arx:papers:1511.07419
    as

    Download full text from publisher

    File URL: http://arxiv.org/pdf/1511.07419
    File Function: Latest version
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Majumdar, Mukul & Radner, Roy, 1991. "Linear Models of Economic Survival under Production Uncertainty," Economic Theory, Springer;Society for the Advancement of Economic Theory (SAET), vol. 1(1), pages 13-30, January.
    2. D. McFadden, 1967. "The Evaluation of Development Programmes," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 34(1), pages 25-50.
    3. Mukul Majumdar & Roy Radner, 1992. "Survival under Production Uncertainty," Palgrave Macmillan Books, in: Mukul Majumdar (ed.), Equilibrium and Dynamics, chapter 8, pages 179-200, Palgrave Macmillan.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Phoebe Koundouri & Georgios I. Papayiannis & Athanasios Yannacopoulos, 2022. "Optimal Control Approaches to Sustainability under Uncertainty," DEOS Working Papers 2215, Athens University of Economics and Business.
    2. Rabi Bhattacharya & Mukul Majumdar, 2021. "Equity and Sustainability: An Exposition," Studies in Microeconomics, , vol. 9(1), pages 92-104, June.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Roy S., 1996. "Theory of dynamic portfolio choice for survival under uncertainty," Mathematical Social Sciences, Elsevier, vol. 31(1), pages 61-62, February.
    2. Hashimzade, Nigar & Majumdar, Mukul, 2002. "Survival under Uncertainty in an Exchange Economy," Working Papers 02-12, Cornell University, Center for Analytic Economics.
    3. Rebelo, Sergio, 1991. "Long-Run Policy Analysis and Long-Run Growth," Journal of Political Economy, University of Chicago Press, vol. 99(3), pages 500-521, June.
    4. Moshe Arye Milevsky & Steven E. Posner, 1999. "Asian Options, The Sum Of Lognormals, And The Reciprocal Gamma Distribution," World Scientific Book Chapters, in: Marco Avellaneda (ed.), Quantitative Analysis In Financial Markets Collected Papers of the New York University Mathematical Finance Seminar, chapter 7, pages 203-218, World Scientific Publishing Co. Pte. Ltd..
    5. McKenzie, L., 1999. "The First Conferences on the Theory of Economic Growth," RCER Working Papers 459, University of Rochester - Center for Economic Research (RCER).
    6. Aliprantis, Charalambos D. & Tourky, Rabee & Yannelis, Nicholas C., 2001. "A Theory of Value with Non-linear Prices: Equilibrium Analysis beyond Vector Lattices," Journal of Economic Theory, Elsevier, vol. 100(1), pages 22-72, September.
    7. Kamihigashi, Takashi & Roy, Santanu, 2007. "A nonsmooth, nonconvex model of optimal growth," Journal of Economic Theory, Elsevier, vol. 132(1), pages 435-460, January.
    8. Graciela Chichilnisky, 1996. "An axiomatic approach to sustainable development," Social Choice and Welfare, Springer;The Society for Social Choice and Welfare, vol. 13(2), pages 231-257, April.
    9. Manuel Moreno & Javier F. Navas, 2003. "Australian Asian options," Economics Working Papers 680, Department of Economics and Business, Universitat Pompeu Fabra.
    10. Charupat, Narat & Milevsky, Moshe A., 2002. "Optimal asset allocation in life annuities: a note," Insurance: Mathematics and Economics, Elsevier, vol. 30(2), pages 199-209, April.
    11. Mitra, Tapan & Roy, Santanu, 2007. "On the possibility of extinction in a class of Markov processes in economics," Journal of Mathematical Economics, Elsevier, vol. 43(7-8), pages 842-854, September.
    12. Yener, Haluk & Soybilgen, Barış & Stengos, Thanasis, 2020. "A general model for financial crises: An application to eurozone crisis," International Review of Economics & Finance, Elsevier, vol. 70(C), pages 202-229.
    13. Rubina Zadourian, 2024. "Model-based and empirical analyses of stochastic fluctuations in economy and finance," Papers 2408.16010, arXiv.org.
    14. Rabi Bhattacharya & Mukul Majumdar, 2021. "Equity and Sustainability: An Exposition," Studies in Microeconomics, , vol. 9(1), pages 92-104, June.
    15. Milevsky, Moshe Arye, 1999. "Martingales, scale functions and stochastic life annuities: a note," Insurance: Mathematics and Economics, Elsevier, vol. 24(1-2), pages 149-154, March.
    16. Rabi Bhattacharya & Mukul Majumdar, 1999. "On a Theorem of Dubins and Freedman," Journal of Theoretical Probability, Springer, vol. 12(4), pages 1067-1087, October.
    17. Zadourian, Rubina & Klümper, Andreas, 2018. "Exact probability distribution function for the volatility of cumulative production," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 495(C), pages 59-66.
    18. Bhattacharya, Rabi & Majumdar, Mukul, 2001. "On a Class of Stable Random Dynamical Systems: Theory and Applications," Journal of Economic Theory, Elsevier, vol. 96(1-2), pages 208-229, January.
    19. Santanu Roy, 2010. "On sustained economic growth with wealth effects," International Journal of Economic Theory, The International Society for Economic Theory, vol. 6(1), pages 29-45, March.
    20. Martin L. Weitzman, 1969. "Optimal Growth with Scale Economies in Overhead Capital," Cowles Foundation Discussion Papers 273, Cowles Foundation for Research in Economics, Yale University.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:arx:papers:1511.07419. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: arXiv administrators (email available below). General contact details of provider: http://arxiv.org/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.