<p>The no-Ponzi condition is a technical condition that needs to be imposed to deal with the case of a time-varying value like capital <code>k</code> diverging at infinity. Even if penalised by an exponential discount, if <code>k</code> increases too fast, its integral will have a non-zero value/undefined value in the limit.</p>
<p>In this particular case, I cannot be sure what it is being asked of you. Technically, the budget constraint you wrote implies something about the behaviour of the functions <code>w(t)</code> and <code>c(t)</code> at infinity. (You cannot write the integral if they diverge faster than the exponential discounting can handle!) But, most likely, the answer that you need is that there is no no-Ponzi condition in there, and it needs to be factored in later.
Look in the paper/textbook for its correct statement.</p>
<p>Also, your definition of <code>R(t)</code> is wrong.</p>

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2023-11-02T15:43:08.140Z
2023-11-02T15:44:30.033Z
2023-11-02T15:44:30.033Z
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<ol>
<li>Explain the no-Ponzi game condition throughout the function.</li>
<li>Does the constrain function:<a href="https://i.sstatic.net/7FnrQ.png" rel="nofollow noreferrer"><img src="https://i.sstatic.net/7FnrQ.png" alt="enter image description here" /></a>  also reflect include the No-Ponzi condition?</li>
</ol>

<macroeconomics><microeconomics><mathematical-economics><economic-growth><ramsey>
Ramsey model problem
Huy Lê Thanh
# Ramsey model problem

(Asked by: username_0 on 2023-11-02)

1. Explain the no-Ponzi game condition throughout the function.
2. Does the constrain function:[![enter image description here](https://i.sstatic.net/7FnrQ.png)](https://i.sstatic.net/7FnrQ.png) also reflect include the No-Ponzi condition?

**Tags:** macroeconomics, microeconomics, mathematical-economics, economic-growth, ramsey

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## 1 answers

### Answer by username_1 on 2023-11-02. Score: 1

The no-Ponzi condition is a technical condition that needs to be imposed to deal with the case of a time-varying value like capital `k` diverging at infinity. Even if penalised by an exponential discount, if `k` increases too fast, its integral will have a non-zero value/undefined value in the limit.

In this particular case, I cannot be sure what it is being asked of you. Technically, the budget constraint you wrote implies something about the behaviour of the functions `w(t)` and `c(t)` at infinity. (You cannot write the integral if they diverge faster than the exponential discounting can handle!) But, most likely, the answer that you need is that there is no no-Ponzi condition in there, and it needs to be factored in later.
Look in the paper/textbook for its correct statement.

Also, your definition of `R(t)` is wrong.


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