ABSTRACT
The Ramsey-Cass- Koopmans (RCK) model is used to analyse the performance of the economy as the rational behaviour of utility maximising individuals. It is considered a building block of dynamic general equilibrium models. This chapter introduces numerical methods to solve boundary value problems (BVPs) using MATLAB/Octave code. Numerically, the process is more challenging for BVPs since there is no single point on the integration interval where all information is available, The RCK model represents an economy of one sector where households and firms, with optimiser behaviours, interact in competitive markets. The development of the RCK model is performed within the following market economy environment: households provide labour services in exchange for wages, and consume and accumulate assets; and firms have technical know-how to turn inputs into output, rent capital from consumers and hire labour services.
