Euler Equation

Ramsey growth model diagram with optimizing household and saddle path trajectory to steady state.

Research Explained

Ramsey Growth Model Economics: How Households Choose Their Savings Rate

The Ramsey growth model economics framework replaces Solow's fixed savings rate with optimizing households that choose consumption and savings paths...

April 29, 2026

Dynamic programming: Bellman equation, Euler equation, transversality condition; six Nobel Prizes; foundation of DSGE.

Mathematical Economics

Dynamic Programming in Economics: Solving Intertemporal Optimisation

Dynamic programming in economics solves intertemporal optimisation through the Bellman equation. Six Nobel Prizes awarded for work built on this...

April 17, 2026