The Golden Rule: Which Saving Rate Maximises Consumption per Worker?
This lesson is part of the course
In this lesson
You compute the steady-state capital, output and consumption per worker for saving rates from 5 % to 70 %, find the golden-rule consumption level and draw the hump-shaped curve of consumption against the saving rate.
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Lessons in this course
- Growth Rates, GDP per Person & Doubling Time: Rule of 70 vs the Exact Formula Locked
- The Cobb–Douglas Production Function: Output per Worker & Marginal Products Locked
- The Solow Model Step by Step: Simulating Capital per Worker toward the Steady State Locked
- The Golden Rule: Which Saving Rate Maximises Consumption per Worker? Locked
- Growth Accounting: Capital, Labour and the Productivity Residual Locked
- Convergence: Catch-up Time, Growth vs Initial Income and a Fitted Prediction Locked
- Purchasing-Power Comparisons and a Composite Development Index Locked
- Population Projections, Dependency Ratios and Income per Person Locked