A BEJM Contributions article.

Abstract

This paper derives a closed form solution for the Ramsey model with CRRA utility and Cobb-Douglas technology, for the case where capital's share is equal to the reciprocal of the intertemporal elasticity of substitution. The solution sheds light on the dynamics of the model and provides an exact expression for the speed of convergence.

Submitted: July 30, 2005 · Accepted: November 29, 2005 · Published: January 26, 2006

Originally published in Contributions to Macroeconomics.

Recommended Citation

Smith, William T. (2006) "A Closed Form Solution to the Ramsey Model," Contributions to Macroeconomics: Vol. 6 : Iss. 1, Article 3.
Available at: http://www.bepress.com/bejm/contributions/vol6/iss1/art3