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

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. -- Capital and labor substitution ; Dynamic programming ; Growth ; Numerical solutions of SDGE models