Ramsey’s Conjecture in a Stochastically Growing Economy
Becker (1980) confirms Ramsey’s conjecture (Ramsey 1928) in a discrete-time model by proving that the most patient individuals own the entire capital of the economy, while others consume their wage income in the long-run.
The author would like to thank Professors Kentaro Iwatsubo, Tetsugen Haruyama, Daishin Yasui and seminar participants at the Kobe University. The financial support of Grants-in-Aid for Scientific Research from the Japan Society for the Promotion of Science (15K03431 and 17K18564) is gratefully acknowledged. The usual disclaimer applies.
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