TY - JOUR A2 - Krieg, Aloys AU - Baten, Md. Azizul AU - Kamil, Anton Abdulbasah PY - 2013 DA - 2013/03/23 TI - Optimal Consumption in a Stochastic Ramsey Model with Cobb-Douglas Production Function SP - 684757 VL - 2013 AB - A stochastic Ramsey model is studied with the Cobb-Douglas production function maximizing the expected discounted utility of consumption. We transformed the Hamilton-Jacobi-Bellman (HJB) equation associated with the stochastic Ramsey model so as to transform the dimension of the state space by changing the variables. By the viscosity solution method, we established the existence of viscosity solution of the transformed Hamilton-Jacobi-Bellman equation associated with this model. Finally, the optimal consumption policy is derived from the optimality conditions in the HJB equation. SN - 0161-1712 UR - https://doi.org/10.1155/2013/684757 DO - 10.1155/2013/684757 JF - International Journal of Mathematics and Mathematical Sciences PB - Hindawi Publishing Corporation KW - ER -