Hostname: page-component-74656f9884-rdgjk Total loading time: 0 Render date: 2026-11-07T05:11:16.660Z Has data issue: false hasContentIssue false
  • English
  • Français

EFFICIENT RAMSEY EQUILIBRIA

Published online by Cambridge University Press:  09 November 2011

Robert A. Becker  and
Tapan Mitra
Robert A. Becker*
Affiliation:
Indiana University
Tapan Mitra
Affiliation:
Cornell University
*
Address correspondence to: Robert A. Becker, Department of Economics, Indiana, Bloomington, IN 47405, USA; e-mail: becker@indiana.edu.
Rights & Permissions [Opens in a new window]

Abstract

Core share and HTML view are not available for this content. However, as you have access to this content, a full PDF is available via the 'Save PDF' action button.

Ramsey equilibrium models with heterogeneous agents and borrowing constraints are shown to yield efficient equilibrium sequences of aggregate capital and consumption. The proof of this result is based on verifying that equilibrium sequences of prices satisfy the Malinvaud criterion for efficiency.

Keywords

Ramsey EquilibriaBorrowing ConstraintEfficiencyMalinvaud Condition

Information

Type
Articles
Information
Macroeconomic Dynamics , Volume 16 , Supplement S1: Nonlinear Dynamics in Equilibrium Models , April 2012 , pp. 18 - 32
Copyright
Copyright © Cambridge University Press 2011

References

REFERENCES

Alvarez, Fernando and Jermann, Urban J. (2000) Efficiency, equilibrium, and asset pricing with risk of default. Econometrica 68, 775–798.CrossRefGoogle Scholar
Becker, Robert A. (1980) On the long-run steady state in a simple dynamic model of equilibrium with heterogeneous households. Quarterly Journal of Economics 95, 375–382.CrossRefGoogle Scholar
Becker, Robert A. (2006) Equilibrium dynamics with many agents. In Dana, Rose-Anne, Le Van, Cuong, Mitra, Tapan, and Nishimura, Kazuo (eds.), Handbook of Optimal Growth 1, pp. 385–442. Heidelberg, Germany: Springer-Verlag.CrossRefGoogle Scholar
Becker, Robert A., Boyd, John H. III, and Foias, Ciprian (1991) The existence of Ramsey equilibrium. Econometrica 59, 441–460.CrossRefGoogle Scholar
Becker, Robert A. and Foias, Ciprian (1987) A characterization of Ramsey equilibrium. Journal of Economic Theory 41, 173–184.CrossRefGoogle Scholar
Becker, Robert A. and Tsyganov, Eugene N. (2002) Ramsey equilibrium in a two-sector model with heterogeneous households. Journal of Economic Theory 105, 188–225.CrossRefGoogle Scholar
Benveniste, Lawrence M. and Gale, David (1975) An extension of Cass' characterization of infinite efficient production programs. Journal of Economic Theory 10, 229–238.CrossRefGoogle Scholar
Bewley, Truman (1982) An integration of equilibrium theory and turnpike theory. Journal of Mathematical Economics 10, 233–267.CrossRefGoogle Scholar
Bloise, Gaetano (2008) Efficiency and prices in economies of overlapping generations. Journal of Economic Theory 141, 200–224.CrossRefGoogle Scholar
Bloise, Gaetano and Calciano, Filippo L. (2008) A characterization of inefficiency in stochastic overlapping generations economies. Journal of Economic Theory 143, 442–468.CrossRefGoogle Scholar
Bloise, Gaetano and Reichlin, Pietro (2009) Asset Prices, Debt Constraints and Efficiency. Working paper, Department of Economics, Rome III.Google Scholar
Cass, David (1972) On capital overaccumulation in the aggregative, neoclassical model of economic growth: A complete characterization. Journal of Economic Theory 4, 200–223.CrossRefGoogle Scholar
Cass, David and Yaari, Menahem E. (1971) Present values playing the role of efficiency in the one-sector growth model. Review of Economic Studies 38, 331–339.CrossRefGoogle Scholar
Chattopadhyay, Subir (2008) The Cass criterion, the net dividend criterion, and optimality. Journal of Economic Theory 139, 335–352.CrossRefGoogle Scholar
Chattopadhyay, Subir and Gottardi, Piero (1999) Stochastic OLG models, market structure, and optimality. Journal of Economic Theory 89, 21–67.CrossRefGoogle Scholar
Coles, Jeffrey L. (1985) Equilibrium turnpike theory with constant returns to scale and possibly heterogeneous discount factors. International Economic Review 26, 671–679.CrossRefGoogle Scholar
Le Van, Cuong and Vailakis, Yiannis (2003) Existence of a competitive equilibrium in a one-sector growth model with heterogeneous agents and irreversible investment. Economic Theory 22, 743–771.CrossRefGoogle Scholar
Malinvaud, Edmond (1953) Capital accumulation and efficient allocation of resources. Econometrica 21, 233–268.CrossRefGoogle Scholar
Mitra, Tapan (1979) Identifying inefficiency in smooth aggregative models of economic growth: A unifying criterion. Journal of Mathematical Economics 6, 85–111.CrossRefGoogle Scholar
Rader, John T. (1972) Theory of General Economic Equilibrium. New York: Academic Press.Google Scholar
Ramsey, Frank P. (1928) A mathematical theory of saving. Economic Journal 38, 543–559.CrossRefGoogle Scholar
Sorger, Gerhard (1994) On the structure of Ramsey equilibrium: Cycles, indeterminacy, and sunspots. Economic Theory 4, 745–764.CrossRefGoogle Scholar
Sorger, Gerhard (1995) Chaotic Ramsey equilibrium. International Journal of Bifurcation and Chaos 5, 373–380.CrossRefGoogle Scholar