Growth Models

Solow Growth Model

Key Equations:
The production function in intensive (per effective worker) form:
\(y_t = k_t ^\alpha\)
In equilibrium, 
\(sf(k_t) = (n + g + \delta) k_t\)
And the golden-rule level (optimal value of the saving rate to maximize consumption): 
\(f'(k_t) = (n + g + \delta)\)
Corresponding Graphs:
Effects of...

Ramsey-Cass-Koopmans