The New Palgrave Dictionary of Economics

2018 Edition
| Editors: Macmillan Publishers Ltd

Ramsey Model

  • David M. Newbery
Reference work entry
DOI: https://doi.org/10.1057/978-1-349-95189-5_1730

Abstract

Frank Plumpton Ramsey died at the age of 26 after making brilliant contributions to philosophy mathematical logic, and, of course, economics. His two contributions to economics both appeared in the Economic Journal, then edited by J.M. Keynes. The first, ‘A Contribution to the Theory of Taxation’, published in March, 1927, laid the foundation for the modern theory of commodity taxation. The second, the subject of this entry, was ‘A Mathematical Theory of Saving’, published in December, 1928. Keynes, in his obituary notice published two months after Ramsey’s death, in the Economic Journal of March, 1930, described the latter as ‘one of the most remarkable contributions to mathematical economics ever made, both in respect of the intrinsic importance and difficulty of its subject, the power and elegance of the technical methods employed, and the clear purity of illumination with which the writer’s mind is felt by the reader to play about its subject’.

Keywords

Arbitrage Bellman’s dynamic programming Bliss Calculus of variations Capital gains Capital theory Commodity taxation Dual economies Exhaustible resources Golden rule Hamiltonians Heterogeneous capital goods Intertemporal competitive equilibrium Intertemporal welfare maximization Investment Keynes-Ramsey rule Life-cycle savings Marginal utility of consumption Neoclassical growth theory Optimal accumulation Optimal growth Optimal monetary policy Optimal saving rate Optimal taxation Planning Pontryagin maximum principle Population growth Production functions Public investment criteria Ramsey model Ramsey, F. P. Rate of interest Social welfare function Stationary state Taxation of capital 
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Copyright information

© Macmillan Publishers Ltd. 2018

Authors and Affiliations

  • David M. Newbery
    • 1
  1. 1.