The Dynamics of the Ramsey Economic Growth Model with the von Bertalanffy Population Growth Law

Content Provider	Semantic Scholar
Author	Accinelli, Elvio
Copyright Year	2006
Abstract	One of the key elements in economic growth theory is that population growth exponentially. In this paper we reformulate the Ramsey model of economic growth by assuming that the law describing population growth verifies two stylized facts: 1) population is strictly increasing and bounded and 2) the rate of growth of population is strictly decreasing to zero. In particular we use the von Bertalanffy population growth law. Our model is represented by a system of differential equations with population and per capita consumption and capital as state variables. We show the existence of a steady state and we study its stability. In particular we show that the equilibrium is a saddle point with two dimensional basins of attraction. We also compare the results with the classical Ramsey model, showing that the modified model improves long run values of capital and consumption per capita. Mathematics Subject Classification: 91B62
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Language	English
Access Restriction	Open
Content Type	Text
Resource Type	Article