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

Frank Raymond ()
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Frank Raymond: Department of Economics, Bellarmine University

No 6, Working Papers from College of the Holy Cross, Department of Economics

Abstract: 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.

Date: 2000-06
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