Regression modelMacroeconomic Growth
Ramsey-Cass-Koopmans Model
The Ramsey-Cass-Koopmans model, developed initially by Frank Ramsey in 1928 and formalized by David Cass and Tjalling Koopmans in 1965, is the workhorse model of macroeconomic growth theory. It describes how rational consumers optimize consumption and savings over an infinite horizon, subject to an aggregate production function, and derives the long-run growth path and the optimal allocation of resources.
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Sources
- Ramsey, F. P. (1928). A Mathematical Theory of Saving. Economic Journal, 38(152), 543–559. DOI: 10.2307/2224098 ↗
- Cass, D. (1965). Optimality and the Dynamic Stability of Equilibrium. Metroeconomica, 16(2), 101–115. link ↗
- Koopmans, T. C. (1965). On the Concept of Optimal Economic Growth. Pontificiae Academiae Scientiarum Scripta Varia, 28, 1–75. link ↗