The Ramsey-Cass-Koopmans Model Part 2: Analysis

This is part 2 of the discussion of the Ramsey-Cass-Koopmans model, one of the core models of dynamic macroeconomics

I also describe the Ramsey-Cass-Koopmans model in chapter 5 of Prettner and Bloom (2020). Automation and Its Macroeconomic Consequences. Theory, Evidence, and Social Impacts.

For the overlapping generations model - the second core model of dynamic macroeconomics - please see

For more macroeconomic models, please see

[KlausPrettner]

Thank you very much for watching the lecture on the Ramsey-Cass-Koopmans model. I hope you liked it and find it useful. For the second important macroeconomic model, the overlapping generations (OLG) model, please see

For more macroeconomic models, please see

Thank you for all the kind comments that I appreciate highly.

[AE-cjch]

The examples of Germany and the USSR are incredible. Basically, due to exogenous economic shocks or central planning, the market might be disrupted, destroyed or distorted. When the market force kicks in freely again, the economy naturally moves toward the steady-state equilibrium. Just wonderful!

[goncalomorais]

Professor Prettner, thank you for these 2 amazing videos, they were great for me to understand this model in order to prepare for my master courses on macroeconomics

[krishnakumars]

Dear Prof,
I watched both of the videos on RCK. It not only explains the algebra but also the argument associated with the same, the logic and rationale behind each step. From an exogenous savings rate in the Solow model, how does the RCK model endogenise the same? How does the transition occur through saddle path to the steady srate, you have explained it beautifully.
Thanks much, i have immensely benefited. Krishnakumar

[lenj]

Thank you so much! Very clear and good explanation.

[subhampaul]

Such a nice video
Take respect from
IGNOU (School of Management)

[SuryathejC]

Professor, how can we show that the steady state is saddle point stable through the phase diagram?

[Skey]

How do you know/find where to start the saddle path?

[nemathassnain]

you were too fast. you need to slow down