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  3. American Economic Review
  4. June 2002
  5. An Experimental Test of an Optimal Growth Model

An Experimental Test of an Optimal Growth Model

  • Vivian Lei
  • Charles N. Noussair
American Economic Review
vol. 92, no. 3, June 2002
(pp. 549-570)
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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: 10.1257/00028280260136246

JEL Classification

  • O41 One, Two, and Multisector Growth Models