02192cam a22002537 4500001000600000003000500006005001700011008004100028100002000069245013500089260006600224490005100290500001600341520106500357530006101422538007201483538003601555690005701591690008901648710004201737830008601779856003701865856003601902t0290NBER20191014091428.0191014s2003 mau||||fs|||| 000 0 eng d1 aSmetters, Kent.14aThe (Interesting) Dynamic Properties of the Neoclassical Growth Model with CES Productionh[electronic resource] /cKent Smetters. aCambridge, Mass.bNational Bureau of Economic Researchc2003.1 aNBER technical working paper seriesvno. t0290 aMarch 2003.3 aDespite being the standard growth model for several decades, little is actually known analytically about the dynamic properties of the neoclassical Ramsey-Cass-Koopmans growth model. This paper derives analytically the properties of the endogenous saving rate when technology takes the Constant Elasticity of Substitution (CES) form. For a factor substitution elasticity between capital and labor less than unity, the saving rate decreases along the transition path after the capital stock reaches a critical value identified analytically herein. But before reaching this critical value, the saving rate might increase and so, taken as a whole, the saving rate path might manifest overshooting.' Similarly, for a factor substitution elasticity greater than unity, the saving rate increases along the transition path after the capital stock reaches a critical value. Before reaching this critical value, the saving rate might decrease and so the saving rate path might manifest undershooting.' A simulation illustrating these interesting dynamics is presented. aHardcopy version available to institutional subscribers. aSystem requirements: Adobe [Acrobat] Reader required for PDF files. aMode of access: World Wide Web. 7aE20 - General2Journal of Economic Literature class. 7aO41 - One, Two, and Multisector Growth Models2Journal of Economic Literature class.2 aNational Bureau of Economic Research. 0aTechnical Working Paper Series (National Bureau of Economic Research)vno. t0290.4 uhttp://www.nber.org/papers/t029041uhttp://dx.doi.org/10.3386/t0290