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

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
   • Solow Growth Model | Part 1 | Model I...  

Part 2: Finding the Steady State
   • Solow Growth Model | Part 2 | Steady ...  

Part 3: Permanent Shock Analysis
   • Solow Growth Model | Part 3 | Permane...