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Shinya Tsukahara
''A note on Ramsey's conjecture with AK technology''
( 2016, Vol. 36 No.1 )
We consider an endogenously growing economy with heterogeneous households, each of which prefers capital (or wealth) as well as consumption. Regarding Ramsey's conjecture on the long-run distribution of capital among households, we present some extended versions of the result that was shown by Nakamura (2014, “On Ramsey's Conjecture with AK Technology,” Economics Bulletin, 34(2), pp. 875-884). One of our results is that if aggregate capital productivity is low, the most impatient household could eventually own the entire capital (not “almost all” the capital) of the economy.
Keywords: Heterogeneous households, Wealth preference, Patience, Wealth distribution, Endogenous growth
JEL: D3 - Distribution: General
E2 - Macroeconomics: Consumption, Saving, Production, Employment, and Investment: General (includes Measurement and Data)
Manuscript Received : Nov 04 2015 Manuscript Accepted : Feb 11 2016

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