THE GOLDEN RULE OF ACCUMULATION: A FABLE FOR GROWTHMEN
1980; Elsevier BV; Linguagem: Inglês
10.1016/b978-0-12-554002-5.50007-8
Autores Tópico(s)Economic Theory and Policy
ResumoThis chapter presents an understanding of Solovian growth and the economic growth issue. It discusses the way in which a brilliant peasant named Oiko Nomos claimed a prize for optimum investment ratio. The Solovians were deeply impressed by Oiko and his theorems. Oiko suggested that associated with the golden-rule path is a unique capital–output ratio. If one's present capital–output ratio is smaller, then consumption must be slowed until the ratio is no longer deficient. If the present ratio exceeds the golden-rule ratio, then consumption must be made at a fast rate until the capital–output ratio is no longer excessive. The chapter discusses the way in which the kingdom followed the golden rule of accumulation.
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