Reference : The Behavior of the Saving Rate in the Neoclassical Optimal Growth Model
E-prints/Working papers : Already available on another site
Business & economic sciences : Macroeconomics & monetary economics
http://hdl.handle.net/10993/7530
The Behavior of the Saving Rate in the Neoclassical Optimal Growth Model
English
Litina, Anastasia mailto [University of Macedonia > Department of Economics]
Palivos, Theodore mailto [University of Macedonia > Department of Economics]
2011
No
[en] Saving Rate ; Ramsey-Cass-Koopmans Model ; Elasticities of Substitution
[en] This paper characterizes analytically the saving rate in the Ramsey-Cass-Koopmans model with a general production function when there exists both exogenous and endogenous growth. It points out conditions involving the share of capital and the elasticities of factor and intertemporal substitution under which the saving rate path to its steady-state value exhibits overshooting, undershooting, or is monotonic. Simulations illustrate these interesting dynamics. The paper also identifies the general class of production functions that render the saving rate constant along the entire transition path and hence make the Ramsey-Cass-Koopmans model isomorphic to that of Solow-Swan.
http://hdl.handle.net/10993/7530
http://ideas.repec.org/p/mcd/mcddps/2008_05.html

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