Establishing the Historical Foundations of Modern Growth Theory: An Inquiry into the Motivation and Methodology of F.P. Ramsey

Frank Ramsey's methodology is evident in virtually every modern analysis of intertemporal savings decisions. Unfortunately, his abbreviated lifespan, combined with what was at the time a novel and uniquely mathematical approach, may have contributed to a sometimes obscure legacy. In an effort to trace the catalysts for his work, this paper describes the evolution of the theory of intertemporal savings up to the publication of A Mathematical Theory of Saving (1928). This analysis first describes the evolution of classical interpretations of both the sources and function of savings. Thus equipped, Ramsey's role as a forefather of modern methodology and thought appears more evident.