Implicit Programming and the Invariant Manifold for Ramsey Equilibria

  • Robert A. Becker
  • Ciprian Foias
Conference paper

Abstract

We present an economically motivated construction of the global invariant manifold for a class of Ramsey equilibria. This invariant manifold is found by solving a functional equation for an implicit programming problem based on the most patient household’s necessary condition for an optimum. An iterative process is given which yields the first agent’s optimal policy function in the limit and thereby the invariant manifold.

Keywords

Manifold Income Dition Librium Rium 

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Copyright information

© Springer-Verlag Berlin · Heidelberg 1998

Authors and Affiliations

  • Robert A. Becker
    • 1
  • Ciprian Foias
    • 2
  1. 1.Department of EconomicsIndiana UniversityBloomingtonUSA
  2. 2.Department of MathematicsIndiana UniversityBloomingtonUSA

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