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DYNAMICS OF THE CONSUMPTION–CAPITAL RATIO, THE SAVING RATE, AND THE WEALTH DISTRIBUTION IN THE NEOCLASSICAL GROWTH MODEL

Published online by Cambridge University Press:  01 September 2008

Subrata Guha
Subrata Guha*
Affiliation:
Jawaharlal Nehru University
*
Address correspondence to: Subrata Guha, Centre for Economic Studies and Planning, School of Social Sciences, Jawaharlal Nehru University, New Delhi 110067, India; e-mail: subrataguha@hotmail.com.
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Abstract

The paper utilizes a common approach to derive sufficient conditions for strictly monotonic behavior of three ratios along the transition to the steady state in the Ramsey–Cass–Koopmans model: the consumption–capital ratio, the consumption–output ratio (and the saving rate), and the consumption–wage ratio. These conditions are then applied to derive additional results on the transitional dynamics of the distribution of wealth in the model (when individual consumers are differentiated by their initial wealth endowments).

Keywords

NeoclassicalRamsey–Cass–KoopmansGrowthInequalityWealth DistributionSaving

Information

Type
Articles
Information
Macroeconomic Dynamics , Volume 12 , Issue 4 , September 2008 , pp. 481 - 502
Copyright
Copyright © Cambridge University Press 2008

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