An experimental test of an optimal growth model

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38 Scopus citations


This paper describes the design and behavior of an experimental economy with the structure of the Ramsey-Cass-Koopmans model of optimal growth. The experiment includes three different implementations of the model: a decentralized implementation with multiple agents and a market for capital, a treatment where individual subjects are placed in the role of social planners, and a treatment where the social planner consists of five agents making a joint decision. The findings highlight the role of market institutions in facilitating convergence to the optimal steady state. (JEL C91, C92, O40).

Original languageEnglish (US)
Pages (from-to)549-570
Number of pages22
JournalAmerican Economic Review
Issue number3
StatePublished - Jun 2002
Externally publishedYes

ASJC Scopus subject areas

  • Economics and Econometrics


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