Re-formulation of the Ramsey model of optimal growth with the Richards population growth law Article uri icon


  • In standard economic growth theory it is assumed that labor force follows exponential growth, a not realistic assumption. As described by Maynard Smith (1974), the growth of natural populations is more accurately depicted by a logistic growth law. In this paper we modify the Ramsey model by introducing the generalized logistic equation that describes more accurately population growth. We develop the model and study the stability properties, contrasting its long run equilibrium with the steady state of the traditional model.

publication date

  • 2006-01-01