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arXiv · 1511.07419

Sustainability in the Stochastic Ramsey Model

Rabi Bhattacharya·Hyeonju Kim·Mukul Majumdar
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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.

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Rabi Bhattacharya, Hyeonju Kim, Mukul Majumdar. 2015-11-23. Sustainability in the Stochastic Ramsey Model. https://arxiv.org/abs/1511.07419

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