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Consider the Solow growth model with a production function per person (1).pdf

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21stcenturyjammu21

The document discusses the Solow growth model, focusing on a production function per person represented by f(k) = zk. It mentions key parameters such as a population growth rate of 1.3%, a depreciation rate of 4%, a capital share of 32%, and a total factor productivity (TFP) of 16. The main objective is to determine the golden rule quantity of capital per worker.

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Consider the Solow growth model with a production function per person given by f ( k ) = z k . The population growth is 1.3% , the depreciation rate is 4% and the capital share is 32% . Assume that TFP is equal to 16. What is the golden rule quantity of capital per worker?

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Consider the Solow growth model with a production function per person (1).pdf

  • 1. Consider the Solow growth model with a production function per person given by f ( k ) = z k . The population growth is 1.3% , the depreciation rate is 4% and the capital share is 32% . Assume that TFP is equal to 16. What is the golden rule quantity of capital per worker?