American Economic Review Vol. 92 No. 3 2002
An Experimental Test of an Optimal Growth Model
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.
- DOI
- 10.1257/00028280260136246
- Volume
- 92
- Issue
- 3
- Pages
- 411-433
- Language
- en
- Sources
- crossref openalex bibtex:phds-export.bib