A simple proof of existence of equilibrium in a one sector growth modelp with bounded or unbounded returns from below

Abstract

We analyze a Ramsey economy when net investment is constrained to be non negative. We prove existence of a competitive equilibrium when utility need not be bounded from below and the Inada-type conditions need not hold. The analysis is carried out by means of a direct and technically standard strategy. This direct strategy (a) allows us to obtain detailed results concerning properties of competitive equilibria, and (b) is amenable to be easily adapted for the analysis of analogous models often found in macroeconomics.Ramsey model; one sector growth model; non negative net investment; competitive equilibrium