IJPAM: Volume 62, No. 2 (2010)
THE AK OPTIMAL RAMSEY MODEL WITH TAXES AND
EXPONENTIAL UTILITY
EXPONENTIAL UTILITY
Luca Guerrini
Department of Mathematics for Economic and Social Sciences
University of Bologna
5, Viale Filopanti, Bologna, 40126, ITALY
e-mail: luca.guerrini@unibo.it
Department of Mathematics for Economic and Social Sciences
University of Bologna
5, Viale Filopanti, Bologna, 40126, ITALY
e-mail: luca.guerrini@unibo.it
Abstract.This paper examines the implications of assuming an AK technology in the Ramsey model with taxes and exponential utility of Bundau ![$[1]$](img1.png){kind=small}
. The solution for capital and consumption takes a linear form and its long-run behavior is shown to be not necessarily explosive.
Received: June 17, 2010
AMS Subject Classification: 91B62
Key Words and Phrases: AK model, exponential utility
Source: International Journal of Pure and Applied Mathematics
ISSN: 1311-8080
Year: 2010
Volume: 62
Issue: 2