An Experimental Test of an Optimal Growth Model

Authors: Lei V.1; Noussair C.N.2

Source: The American Economic Review, Volume 92, Number 3, 1 June 2002 , pp. 549-570(22)

Publisher: American Economic Association

Key:
Free Content - Free Content
New Content - New Content
Subscribed Content - Subscribed Content
Free Trial Content - Free Trial Content

Abstract:

This paper describes the design and behavior of an experimental economy with the structure of the Ramsey-Cass-Koopmans model of optimal growth. The experiment includes three different implementations of the model: a decentralized implementation with multiple agents and a market for capital, a treatment where individual subjects are placed in the role of social planners, and a treatment where the social planner consists of five agents making a joint decision. The findings highlight the role of market institutions in facilitating convergence to the optimal steady state. (JEL C91, C92, O40)

Language: English

Document Type: Research article

Affiliations: 1: Department of Economics, University of Wisconsin, Milwaukee, WI 53201 2: Krannert School of Management, Purdue University, West Lafayette, IN 47907

The full text electronic article is available for purchase. You will be able to download the full text electronic article after payment.

$19.00 plus tax      Refund Policy

 

OR

Back to top

Key:
Free Content - Free Content
New Content - New Content
Subscribed Content - Subscribed Content
Free Trial Content - Free Trial Content
Share this item with others: These icons link to social bookmarking sites where readers can share and discover new web pages.
Page Help Click here for Page Help
Shopping cart
Tools
Sign in






Need to register?
Sign up here
Text size: A | A | A | A