Spatial rational expectations equilibria in the Ramsey model of optimal growth
Optimization and Control
2017-10-24 v1
Abstract
It is the aim of this work provide a rigorous treatment concerning the formation of spatial rational expectations equlibria in a general class of spatial economic models under the effect of externalities, using techniques from the calculus of variations. Using detailed estimates for a para-metric optimisation problem, the existence of spatial rational expectations equilibria is proved and they are characterised in terms of a nonlocal Euler-Lagrange equation.
Keywords
Cite
@article{arxiv.1710.08110,
title = {Spatial rational expectations equilibria in the Ramsey model of optimal growth},
author = {Filippo Santambrogio and A Xepapadeas and A Yannacopoulos},
journal= {arXiv preprint arXiv:1710.08110},
year = {2017}
}