Aymen A. Khelif, Ph.D, Information Technologies and Telecommunications Sector, 16 Allée du Vercors, Villejuif, Paris, 94800, France
The goal of the paper is to present an alternative version of the Ramsey-Cass-Koopmans model (1965), standing as an application of the formalised optimal growth theory. Based on the microeconomic theory of the consumer, the idea is to suppose an endogenous time preference rate, with an underlying Utility function describing relative preferences between consumption and savings. A such maximising criterion in the dynamic program, allows an interesting application of the Pontryagin's Maximum Principle, and provides results of excellent quality : the model presents an extremely simple expression for the saddle path, and becomes both qualitative and quantitative with strong analogies to the exogenous one of R.Solow (1956). The analysis comes after a generated numerical example, and the two models are put in relationship through a discussion of the golden rule (E.Phelps, 1961). Effects of structural changes in parameters are also explored.
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