The Golden Rule Without Marginal Productivities and Differential Rents: A Remark

Ekkehart Schlicht

Economics Bulletin, 2017, vol. 37, issue 4, 2545-2551

Abstract: The “Golden Rule of Accumulation†characterizes the savings rate that entails the highest possible rate of per capita consumption in the long term. Any permanent change in the savings rate, be it an increase or a reduction, would eventually bring about lower per capita consumption. In the models studied, such a maximum was characterized by the equality of the savings rate and the profit rate or, equivalently, by a rate of interest being equal to the growth rate. The present note shows that the rule applies also to the hybrid model of endogenous growth proposed by Schlicht (2016).

Keywords: Golden Rule; Neoclassical theorem; optimal investment; optimal savings; technical progress function; marginal productivity theory; endogenous growth; hybrid growth model; capital deepening; technical progress function (search for similar items in EconPapers)
JEL-codes: E1 O4 (search for similar items in EconPapers)
Date: 2017-11-19
References: Add references at CitEc
Citations:

Downloads: (external link)
http://www.accessecon.com/Pubs/EB/2017/Volume37/EB-17-V37-I4-P228.pdf (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:ebl:ecbull:eb-17-00602

Access Statistics for this article

More articles in Economics Bulletin from AccessEcon
Bibliographic data for series maintained by John P. Conley ().