Implicit Programming and the Invariant Manifold for Ramsey Equilibria

We present an economically motivated construction of the global invariant manifold for a class of Ramsey equilibria. This invariant manifold is found by solving a functional equation for an implicit programming problem based on the most patient household's necessary condition for an optimum. An iterative process is given which yields the first agent's optimal policy function in the limit and thereby the invariant manifold.

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Year of publication:	1998
Authors:	Becker, R.A. ; Foias, C.
Institutions:	Department of Economics, Indiana University
Subject:	ECONOMIC EQUILIBRIUM

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Series:	Indiana - Center for Econometric Model Research.
Type of publication:	Book / Working Paper
Notes:	30 pages
Classification:	C62 - Existence and Stability Conditions of Equilibrium
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005646997