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Article
A Closed Form Solution to the Ramsey Model
Contributions in Macroeconomics (2010)
  • William T Smith, University of Memphis
Abstract

This paper derives a closed form solution for the Ramsey model with CRRA utility and Cobb-Douglas technology, for the case where capital's share is equal to the reciprocal of the intertemporal elasticity of substitution. The solution sheds light on the dynamics of the model and provides an exact expression for the speed of convergence.

Keywords
  • growth,
  • Ramsey
Publication Date
March 30, 2010
Citation Information
William T Smith. "A Closed Form Solution to the Ramsey Model" Contributions in Macroeconomics Vol. 6 Iss. 1 (2010)
Available at: http://works.bepress.com/william_smith/2/