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)
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