التفاصيل البيبلوغرافية
| العنوان: |
The Golden Rule Again: Comment. |
| المؤلفون: |
Gupta, Kanhaya L., Shabany-Ghazvini, M.1 |
| المصدر: |
American Economic Review. Mar1982, Vol. 72 Issue 1, p226. 2p. |
| مصطلحات موضوعية: |
Endogenous growth (Economics), Economists, Savings, Consumption (Economics), Population, Interest rates, Growth rate, Capital |
| People: |
Phelps, Edward, Davis, Eric |
| مستخلص: |
The Golden Rule of Capital Accumulation originally formulated by economist Edmund Phelps was reexamined by scholar Eric Davis assuming that population growth rate was a monotonically increasing function of per capita income. Davis reached the conclusion that, in order to maximize steady-state per capita consumption, the rate of interest must exceed and not equal the growth rate and the saving ratio must be smaller than the share of capital in income. Recently, another scholar Larry Samuelson formulated a model where the participation rate was endogenously determined, but the population growth rate was exogenous. In this comment it is shown that, in a general model with endogenously determined population growth rate and labor participation rate, the results that have been so discovered are not as "curious." Using the notation of Davis and Samuelson, the convergence condition is shown to identical to that of Samuelson. Taking per capita income to be to be an indicator of the level of economic development of a country one might say that the conditions for optimal rate of savings, among other things, depend on the level of economic development of an economy. |
| قاعدة البيانات: |
Finance Source |
