solow model is developed by Solow who belong s to neoclassical synthesis,or the right wing of keynesian economics,but this model is basically neoclassical,the characteristcis of which are marginal deminishing return to individual productive factor,constant scale of economy,and continous clearing of markets,etc,the only keynesian trace may be behaviourlal saving,that is,fixed saving rate. Ramsey was fisrtly develped by Frank Ramsey, a young mathathician of cambridge university, and this paper was published in Economic Journal whicha was at that time dedited by J.M. Keynese.The question posed by Ramsey in 1927 is to ask how much,or the rate of saving,should be,.In ramsey model saving rate is the result of representative 's intertemporal maximization,yje so called microfoundation.This might be the main difference between ramsey and solow model.In 1965 , the problem was redevelopen by cass and koopmans. NEW growth model is nothing new,the mian feature is that all new grow models model technological advance endogenously,whether through konwledge spillovers,human capital ,.Any way, the diminishing return of capital is not there anymore,Real business cycle is obviously new classical macroeconomics.The working model is still solow model,only here stochastic solow model is used,intending to combine growth and cycle research together.
solow model is developed by Solow who belong s to neoclassical synthesis,or the right wing of keynesian economics,but this model is basically neoclassical,the characteristcis of which are marginal deminishing return to individual productive factor,constant scale of economy,and continous clearing of markets,etc,the only keynesian trace may be behaviourlal saving,that is,fixed saving rate. Ramsey was fisrtly develped by Frank Ramsey, a young mathathician of cambridge university, and this paper was published in Economic Journal whicha was at that time dedited by J.M. Keynese.The question posed by Ramsey in 1927 is to ask how much,or the rate of saving,should be,.In ramsey model saving rate is the result of representative 's intertemporal maximization,yje so called microfoundation.This might be the main difference between ramsey and solow model.In 1965 , the problem was redevelopen by cass and koopmans. NEW growth model is nothing new,the mian feature is that all new grow models model technological advance endogenously,whether through konwledge spillovers,human capital ,.Any way, the diminishing return of capital is not there anymore,Real business cycle is obviously new classical macroeconomics.The working model is still solow model,only here stochastic solow model is used,intending to combine growth and cycle research together.