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Copy file name to clipboardExpand all lines: lectures/cass_koopmans_1.md
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This lecture and {doc}`Cass-Koopmans Competitive Equilibrium <cass_koopmans_2>` describe a model that Tjalling Koopmans {cite}`Koopmans`
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and David Cass {cite}`Cass` used to analyze optimal growth.
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The model can be viewed as an extension of the model of Robert Solow
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described in [an earlier lecture](https://python-programming.quantecon.org/python_oop.html)
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but adapted to make the saving rate be a choice.
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The model extends the model of Robert Solow
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described in [an earlier lecture](https://python-programming.quantecon.org/python_oop.html).
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It does so by making the saving rate be a choice, instead of a hard-wired fixed number.
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(Solow assumed a constant saving rate determined outside the model.)
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We describe two versions of the model, one in this lecture and the other in {doc}`Cass-Koopmans Competitive Equilibrium <cass_koopmans_2>`.
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We describe two versions of the model, a planning problem without prices in this lecture, and a competitive equilibrium with prices in this lecture {doc}`Cass-Koopmans Competitive Equilibrium <cass_koopmans_2>`.
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Together, the two lectures illustrate what is, in fact, a
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more general connection between a **planned economy** and a decentralized economy
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- A min-max problem for solving a planning problem.
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- A **shooting algorithm** for solving difference equations subject
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to initial and terminal conditions.
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- A **turnpike** property that describes optimal paths for
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