Ramsey Model

Burkhard Heer

Chapter 2 in Public Economics, 2019, pp 9-61 from Springer

Abstract: Abstract This chapter presents the Ramsey model Ramsey model. It is the benchmark model for most dynamic macroeconomic models that study growth and business cycle phenomena. We first study the deterministic Ramsey model in which the total factor productivity is certain. We contrast the effects of a once-and-for-all change with those of a temporary change in productivity on investment, output, and labor supply. In addition, we distinguish the effects of this change when it is known in advance or only observed at the beginning of the period, t, when the shock occurs. Finally, we also introduce uncertainty with respect to the technology level and discuss the real business cycle (RBC) model.

Date: 2019
References: Add references at CitEc
Citations:

There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it.

Related works:
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:spr:sptchp:978-3-030-00989-2_2

Ordering information: This item can be ordered from
http://www.springer.com/9783030009892

DOI: 10.1007/978-3-030-00989-2_2

Access Statistics for this chapter

More chapters in Springer Texts in Business and Economics from Springer
Bibliographic data for series maintained by Sonal Shukla () and Springer Nature Abstracting and Indexing ().