Solow Growth Model | Part 4 | The Golden Rule | Intermediate Macroeconomics

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The Golden Rule associated with the Solow Growth Model selects the savings rate that maximizes consumption in a steady state. I discuss this topic in detail and explain how to find the savings rate associated with the Golden Rule.

Chapters:
0:00 - What is the Golden Rule?
1:32 - Ruling Out Extreme Cases
5:47 - Finding the Golden Rule Capital
9:18 - Finding the Golden Rule Savings Rate
12:49 - Graphical Illustration of the Golden Rule

For prerequisites to this video, I recommend watching parts 1 through 3 of my Solow Growth Model series.

Part 1: Introduction and Solution

Part 2: Finding the Steady State

Part 3: Permanent Shock Analysis
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This was extremely helpful as a last resort the night before my exam, thank you!

cathegurl
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You are absolutely excellent! Much better than a professor at the University of Hong Kong.

Eric-tsur
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Thank you very much, for these insightful detail about the Golden rule. This saves so much time.

hazimkhaqanrana
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Thx for videos on Solow Growth, really helpful.

emperorpalpatine
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Well explained sir... thanks for your help 🙏🙏

sospetersalvatory
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I'm failing this midterm lmao it's so over

colossusofrhodes
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when I plug-in the solution for the capital into the solution for the savings rate, lo and behold, the Golden Rule Saving Rate = alpha

ChristophTzschucke