Sustainability in the Stochastic Ramsey Model

Rabi Bhattacharya; Hyeonju Kim; Mukul Majumdar

doi:10.1007/s40953-015-0020-5

Sustainability in the Stochastic Ramsey Model

Rabi Bhattacharya
, Hyeonju Kim
, Mukul Majumdar

Mathematics

Research output: Contribution to journal › Article › peer-review

1 Scopus citations

Abstract

In this paper we provide a self-contained exposition of the problem of sustaining a constant consumption level in a Ramsey model. Our focus is on the case in which the output capital-ratio is random. After a brief review of the known results on the probabilities of sustaining a target consumption from an initial stock, we present some new results on estimating the probabilities by using Chebyshev inequalities. Some numerical calculations for these estimates are also provided.

Original language	English (US)
Pages (from-to)	169-184
Number of pages	16
Journal	Journal of Quantitative Economics
Volume	13
Issue number	2
DOIs	https://doi.org/10.1007/s40953-015-0020-5
State	Published - Dec 2015

Keywords

Chebysev inquality
Ramsey model
Ruin probability
Sustainability

ASJC Scopus subject areas

Development
Economics and Econometrics
Economics, Econometrics and Finance (miscellaneous)
Business and International Management

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10.1007/s40953-015-0020-5

Cite this

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KW - Chebysev inquality

KW - Ramsey model

KW - Ruin probability

KW - Sustainability

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Sustainability in the Stochastic Ramsey Model

Abstract

Keywords

ASJC Scopus subject areas

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