Ramsey model
The Ramsey model is a neoclassical model of growth theory . It is based on fundamental work by Frank Plumpton Ramsey (1928). The most important extensions were made by David Cass (1965) and Tjalling Koopmans (1965), which is why this model category is also called the Ramsey – Cass – Koopmans model .
classification
The Ramsey model is now the starting point for modern dynamic macroeconomics.
Ramsey’s fundamental question was how much should a society save if its goal is to maximize the welfare of its members over an indefinite period of time. In contrast to the Solow model, the savings rate results endogenously from the utility maximization problem of an infinitely long household.
One result of the Ramsey model is the so-called Keynes-Ramsey rule , the growth rate of consumption as a result of intertemporal utility maximization.
literature
Primary literature
- Frank Plumpton Ramsey: A mathematical theory of saving . In: The Economic Journal . 1928, p. 543-559 .
- David Cass: Optimum growth in an aggregative model of capital accumulation . In: The Review of Economic Studies . 1965, p. 233-240 .
- TC Koopmans: On the concept of optimal economic growth. The econometric approach to development planning . Chicago 1965.
Secondary literature
- Maik Heinemann: Dynamic Macroeconomics . Springer Gabler; Edition: 2015 (November 20, 2014). ISBN 978-3662441558 . Chapter 3 The Ramsey Model .
Web links
- Ramsey models - Article in the Gabler Wirtschaftslexikon
Individual evidence
- ↑ a b Ramsey models - article in the Gabler Wirtschaftslexikon.
- ↑ Maik Heinemann: Dynamic Macroeconomics . Springer Gabler; Edition: 2015 (November 20, 2014). ISBN 978-3662441558 . P. 75.
- ^ Alfred Maussner: Growth theory . Jumper; Edition: 1996 (October 4, 2013). ISBN 978-3540615019 . Chapter The Ramsey Model . P. 116ff.