2019/09/03 by Leonhard Frerick, Georg Muller‐Fürstenberger, Frerick, L. +5
Business, Management and Accounting · Economics, Econometrics and Finance · #Economic Theory and Policy #Economic theories and models #FOS: Mathematics #Financial Literacy, Pension, Retirement Analysis #Optimization and Control (math.OC)
paper · pdf · doi:10.48550/arxiv.1909.01294
openalex publication_date 2019/09/03 · openalex created_date 2025/10/10 · openalex updated_date 2026/07/28
We consider a Ramsey model with several households with heterogeneous preferences who are able to borrow capital to each other. Since the capital constraints of one household then depends on the others' capital, one can no longer optimize each household's welfare individually. This problem formulation leads to a Pareto optimization problem. We consider existence and first order optimality conditions as well as some numerical results.