Van, Cuong Le; Nguyen, Manh Hung; Vailakis, Yiannis - Maison des Sciences Économiques, Université Paris 1 … - 2005
The paper extends the canonical representative agent Ramsey model to include heterogeneous agents and elastic labor supply. The welfare maximization problem is analyzed and shown to be equivalent to a non-stationary reduced form model. An iterative procedure is exploited to prove the...