An Arbitrarily Precise Global Closed Form Approximation for the Neoclassical Growth Model

Jordan Roulleau-Pasdeloup

Papers from arXiv.org

Abstract: I consider a neoclassical growth model with a constant absolute risk aversion (CARA) utility function and derive a global closed form approximation that is arbitrarily precise as the discount rate $\rho$ is close to the population growth rate $n$. I use it to show that the consumption function is strictly concave and that countries can have two different paths converging to the steady-state: front-loading and back-loading.

Date: 2026-09
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