An exercise on discrete-time intertemporal optimization

This paper, using the different alternative methods of dynamic optimization (the Lagrange/Kuhn-Tucker (LKT) method, the substitution method, the Hamiltonian method, and the dynamic programming approach) derives the conditions that must be satisfied by the solution to the so-called Ramsey problem, hopefully in a way that can be understood by undergraduate economics students. This is done by assuming that time is discrete and that, for simplicity but without loss of generality, there are only three periods.

MoreLess

Year of publication:	2013
Authors:	Natividad-Carlos, Fidelina B.
Publisher:	Quezon City : University of the Philippines, School of Economics (UPSE)
Subject:	Ramsey problem \| dynamic optimazation \| Lagrange method \| Substitution method \| Hamiltonian method \| dynamic programming

More details

Series:	UPSE Discussion Paper ; 2013-06
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	75538251X [GVK] hdl:10419/93563 [Handle]
Classification:	C61 - Optimization Techniques; Programming Models; Dynamic Analysis ; D91 - Intertemporal Consumer Choice; Life Cycle Models and Saving ; E21 - Consumption; Saving
Source:	EconStor

Persistent link: https://ebvufind01.dmz1.zbw.eu/10010333543