American Economic Review
ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)
An Experimental Test of an Optimal Growth Model
American Economic Review
vol. 92,
no. 3, June 2002
(pp. 549–570)
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. (JEL C91, C92, O40)Citation
Lei, Vivian, and Charles N. Noussair. 2002. "An Experimental Test of an Optimal Growth Model ." American Economic Review, 92 (3): 549–570. DOI: 10.1257/00028280260136246JEL Classification
- O41 One, Two, and Multisector Growth Models