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EFFICIENT RAMSEY EQUILIBRIA

Published online by Cambridge University Press:  09 November 2011

Robert A. Becker  and
Tapan Mitra
Robert A. Becker*
Affiliation:
Indiana University
Tapan Mitra
Affiliation:
Cornell University
*
Address correspondence to: Robert A. Becker, Department of Economics, Indiana, Bloomington, IN 47405, USA; e-mail: becker@indiana.edu.
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Abstract

Ramsey equilibrium models with heterogeneous agents and borrowing constraints are shown to yield efficient equilibrium sequences of aggregate capital and consumption. The proof of this result is based on verifying that equilibrium sequences of prices satisfy the Malinvaud criterion for efficiency.

Keywords

Ramsey EquilibriaBorrowing ConstraintEfficiencyMalinvaud Condition
Type
Articles
Information
Macroeconomic Dynamics , Volume 16 , Supplement S1: Nonlinear Dynamics in Equilibrium Models , April 2012 , pp. 18 - 32
Copyright
Copyright © Cambridge University Press 2011

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References

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