The Behaviour of the Saving Rate in the Neoclassical Optimal Growth Model

Anastasia Litina () and Theodore Palivos

Discussion Paper Series from Department of Economics, University of Macedonia

Abstract: This paper characterizes analytically the saving rate in the Ramsey-Cass-Koopmans model with a general production function when there exists both exogenous and endogenous growth. It points out conditions involving the share of capital and the elasticities of factor and intertemporal substitution under which the saving rate path to its steady-state value exhibits overshooting, undershooting, or is monotonic. Simulations illustrate these interesting dynamics. The paper also identifies the general class of production functions that render the saving rate constant along the entire transition path and hence make the Ramsey-Cass-Koopmans model isomorphic to that of Solow-Swan.

Keywords: The Ramsey-Cass-Koopmans model; Saving rate; Elasticities of Substitution (search for similar items in EconPapers)
JEL-codes: E20 O10 O41 (search for similar items in EconPapers)
Date: 2008-06, Revised 2008-06
New Economics Papers: this item is included in nep-dev, nep-dge and nep-mac
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://aphrodite.uom.gr/econwp/pdf/wp0805.pdf
Our link check indicates that this URL is bad, the error code is: 500 Can't connect to aphrodite.uom.gr:80 (A connection attempt failed because the connected party did not properly respond after a period of time, or established connection failed because connected host has failed to respond.)

Related works:
Journal Article: THE BEHAVIOR OF THE SAVING RATE IN THE NEOCLASSICAL OPTIMAL GROWTH MODEL (2010)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:mcd:mcddps:2008_05

Access Statistics for this paper

More papers in Discussion Paper Series from Department of Economics, University of Macedonia
Bibliographic data for series maintained by Theodore Panagiotidis () and Anastasia Litina ().