ABSTRACT
Saving, or capital accumulation, is not the only way the present generation can help future generations. Technical progress, learning-by-doing and investment in human capital may be at least as important. However, capital accumulation has been the economist’s traditional approach and is the subject matter of this chapter. Put simply, the underlying question is ‘how much saving (and invest- ment) should the present generation do?’ The question is approached by way of Frank Ramsey’s seminal 1 paper, ‘A Mathematical Theory of Saving’ (1928).
