A BEJM Contributions article.

Abstract

I show that in a Ramsey growth model, where the production function is of fixed proportions type and the utility function is CRRA, the saddle path is a closed form expression. The closed form expression greatly simplifies the analysis of how the labor productivity growth, the intertemporal rate of substitution, and the discount factor affect investments and growth.

Submitted: September 24, 2004 · Accepted: March 30, 2005 · Published: April 1, 2005

Originally published in Contributions to Macroeconomics.

Recommended Citation

Mehlum, Halvor (2005) "A Closed Form Ramsey Saddle Path," Contributions to Macroeconomics: Vol. 5 : Iss. 1, Article 2.
Available at: http://www.bepress.com/bejm/contributions/vol5/iss1/art2