We take a differential game approach to assess the Ramsey growth model from the standpoint of the representative firm. We identify parametric conditions such that the economy cannot reach the Ramsey golden rule, due to the presence of a stable demand-driven equilibrium. This may happen under Bertrand and Cournot behaviour, as well as social planning. We show that a wave of horizontal mergers can indeed drive the economy towards the Ramsey golden rule.

R. Cellini, L. Lambertini (2007). Capital Accumulation, Mergers and the Ramsey Golden Rule. BOSTON : Birkhauser.

Capital Accumulation, Mergers and the Ramsey Golden Rule

LAMBERTINI, LUCA
2007

Abstract

We take a differential game approach to assess the Ramsey growth model from the standpoint of the representative firm. We identify parametric conditions such that the economy cannot reach the Ramsey golden rule, due to the presence of a stable demand-driven equilibrium. This may happen under Bertrand and Cournot behaviour, as well as social planning. We show that a wave of horizontal mergers can indeed drive the economy towards the Ramsey golden rule.
2007
Advances in Dynamic Game Theory
487
505
R. Cellini, L. Lambertini (2007). Capital Accumulation, Mergers and the Ramsey Golden Rule. BOSTON : Birkhauser.
R. Cellini; L. Lambertini
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Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/11585/25111
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