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

Juergen Antony; Alfred Maussner

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

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Year of publication:	Jan. 2008
Other Persons:	Antony, Jürgen (contributor) ; Maußner, Alfred (contributor)
Publisher:	Augsburg : Univ., Inst. für Volkswirtschaftslehre
Subject:	Dynamische Optimierung \| Dynamic programming \| Dynamisches Gleichgewicht \| Dynamic equilibrium \| Stochastischer Prozess \| Stochastic process \| Faktorsubstitution \| Factor substitution \| Theorie \| Theory