IJPAM: Volume 62, No. 2 (2010)

THE AK OPTIMAL RAMSEY MODEL WITH TAXES AND
EXPONENTIAL UTILITY

Luca Guerrini
Department of Mathematics for Economic and Social Sciences
University of Bologna
5, Viale Filopanti, Bologna, 40126, ITALY
e-mail: [email protected]


Abstract.This paper examines the implications of assuming an AK technology in the Ramsey model with taxes and exponential utility of Bundau $[1]$. The solution for capital and consumption takes a linear form and its long-run behavior is shown to be not necessarily explosive.

Received: June 17, 2010

AMS Subject Classification: 91B62

Key Words and Phrases: AK model, exponential utility

Source: International Journal of Pure and Applied Mathematics
ISSN: 1311-8080
Year: 2010
Volume: 62
Issue: 2