Solow Growth Model Part 3: The Golden Rule of Capital

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In this video I explore one way of finding the optimal steady state in a Solow growth model. Specifically, I show how to find the steady state that maximizes consumption per worker, by setting f'(k)=depreciation.

NOTE: f'(k)=MPk.
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Bro your explanation on why it became 1/(2*k^(1/2)) helped me a lot since our professor didn't even explain why he did it. Most problems that students are experiencing are not realizing stuff and explanations like these helps a lot. Thanks.

meesathesithlord
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A really good explanation. A lot of better than the explanation of my university lecture.
Thank you !

barbaram.
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Assuming constant returns to scale and that the saving rate is a number between 0 and 1 - won't we always arrive at an golden state saving rate = 0, 5? as it maximizes consumption and investment

Skey