Consumption and Economic Growth
摘要
In this chapter we study Ramsey’s neoclassical growth model. Consumption and investment decisions are made simultaneously. The model assumes that the utility function of a benevolent planner represents collective preferences. We then show that a decentralized economy achieves the same growth path. The model is in continuous time and solved using the Hamiltonian function, with and without technological progress. We then present the extension of the model to include endogenous technological progress and sustainable growth. Finally, we analyze the role of nonrenewable resources and the impact of pollution on welfare and sustainable consumption.