The relationship between efficient growth and savings specific to Ramsey model: The case of Turkey

In the present study, one of the normative growth models, the Ramsey Growth Model was examined. Basing the efficient growth on the optimum consumption, Ramsey utilized the dynamic optimization methods while establishing his model. Thus, the present study incorporates the theory and the economic implementation of dynamic optimization methods. Moreover, the answer to the question "if Turkey has achieved the efficient economic growth and (as an equal achievement) the optimum consumption" is sought. In this aspect, the long-term relationship between "gross domestic product per capita" series and "private consumption final expenses per capita" series were examined using time-series analysis methods. Moreover, by comparing the standard deviation values of these two variables for high-income group countries and Turkey and Malaysia, which is in the same income group with Turkey, the information was gathered regarding the optimum savings (consumption).