Centre for Development Economics
Department of Economics, Delhi School of Economics


A Characterization of Ramsey Equilibrium in a Model with Limited Borrowing


Ram Sewak

Montclair State University

Thursday, 24th July 2014 at 3:00 PM

Venue : Seminar Room (First Floor)
Department of Economics, Delhi School of Economics

All are cordially invited

 We investigate the convergence property of the capital stock sequence in Ramsey equilibria with limited borrowing by households. In our model, at the beginning of each period, households are allowed to borrow against their end of the period wage income. Under this assumption the capital stock sequence converges to the steady state stock irrespective of technology and turnpike property holds in every Ramsey equilibrium.


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