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Tamotsu Nakamura
''On Ramsey's conjecture with AK technology''
( 2014, Vol. 34 No.2 )
This paper analyzes growth and wealth distribution in a simple AK model in which households are heterogeneous not only in time-preference but in intertemporal substitution. Contrary to the result without long-run growth, the most patient household does not always own the entire capital in an economy with perpetual growth. In addition, it is shown that, if the most impatient household has high intertemporal substitutability, it can own the almost all (but not entire) capital of the economy in the long-run.
Keywords: Ramsey conjecture, AK technology, Time preference, Intertemporal substitution
JEL: D9 - Intertemporal Choice and Growth: General
E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data)
Manuscript Received : Apr 04 2014 Manuscript Accepted : May 06 2014

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