Abstract

We study Ramsey model for an open economy applied to the case of Brazil. We find optimal tra jectories of consumption, investment, capital stock and net foreign liabilities and, with this, analyze debt sustainability in Brazil. A new approach to capturing optimal tra jectories is presented. The main tools are the Stable Manifold Theorem and the Lambda Lemma, normally used in the field of dynamical systems.

Full Text
Paper version not known

Talk to us

Join us for a 30 min session where you can share your feedback and ask us any queries you have

Schedule a call

Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.