ENDOGENOUS GROWTH IN MULTISECTOR RAMSEY MODELS

In this paper, I give sufficient conditions for the existence of endog enously growing optimal paths in a general multisector Ramsey model of optimal capital accumulation. The key assumption involves the existen ce of a positive vector of capital stocks which admits strictly positi ve consumption and expansibility in inverse proportion to the utility discount factor. If the technology set contains the ray through such a point, in addition to standard convexity and interiority assumptions, then optimal paths grow without bound from any strictly positive init ial stocks. The result unifies a number of existing models in the grow th theory literature.