Compare and contrast between the Ramsey model for the central planner and the Solow
model for economic growth (your answer should include the assumptions, important
equations, phase diagram and its interpretation
Answers
The Solow–Swan model is an economic model of long-run economic growth set within the framework of neoclassical economics. It attempts to explain long-run economic growth by looking at capital accumulation, labor or population growth, and increases in productivity, commonly referred to as technological progress.
The Ramsey–Cass–Koopmans model, or Ramsey growth model, is a neoclassical model of economic growth based primarily on the work of Frank P. Ramsey,[1] with significant extensions by David Cass and Tjalling Koopmans.[2][3] The Ramsey–Cass–Koopmans model differs from the Solow–Swan model in that the choice of consumption is explicitly microfounded at a point in time and so endogenizes the savings rate. As a result, unlike in the Solow–Swan model, the saving rate may not be constant along the transition to the long run steady state. Another implication of the model is that the outcome is Pareto optimal or Pareto efficient.
Answer:
Monetary development is the expansion in the swelling balanced market estimation of the products and enterprises created by an economy after some time.
It is routinely estimated as the percent rate of increment in genuine total national output, or genuine GDP.
An expansion in financial development brought about by progressively productive utilization of sources of info is alluded to as escalated development.
Advancement of new merchandise and enterprises likewise makes financial development.