Theoretical implications of exogenous economic growth models

Abstract

The objective of this article is to analyze theoretical implications of the exogenous economic growth models by Solow and Ramsey. A documentary review established that the fundamental difference between them is in the way they determine the savings rate. On one hand, Ramsey’s model states that added variables behavior is determined by microeconomic decisions, since they depend on the maximizing eagerness of the agents. On the other hand, in Solow´s model, behavior of the variables does not respond to these maximizing criteria.