Ch12More on the Ramsey Model(高级宏观经济学-柏林洪堡大学,Michael C. Burda).pdfVIP

Introduction to Advanced Macroeconomic Analysis (IAMA) Lecture # 12 More on the Ramsey Model IAMA / Lecture #12 1 Important Announcement! For those interested in applying for Prof. Uhlig´s course Quantitative Macroeconomics and Numerical Methods Seminar (formerly „Quantitative Macroeconomics and Numerical Methods II“). This block seminar will take place April 10 - 13 and on Mo.., Apr. 24, full days always. Send name, e-mail address (or other contact) and student number to Susann Röthke no later than February 10th. Students can find information at http://www.wiwi.hu-berlin.de/wpol/teaching1.html IAMA / Lecture #12 2 1 Summary • Review of last time • Writing down the Ramsey problem • The Maximum Principle • Economic intuition for the optimum • Phase diagram and saddle stability • Remarks on normative v. positive economics IAMA / Lecture #12 3 Review of Last Time • Intuition for the social planner‘s optimum in the OLG model • The OLG model for policy analysis • Ramsey and the Ramsey problem: How much should a nation or a household save? • Infinitely lived individuals and formulating the social planner´s problem in continuous time IAMA / Lecture #12 4 2 Infinitely lived individuals, continuous time and the Ramsey problem • Maximization over functions and the calculus of variations • Cookbook: Pontryagin’s Maximum Principle • Language: What are the state variables? The costate variables? • What are