SOLOW MODEL PART 2 | GOLDEN RULE

[@xampap]

never understood a video better than this. God bless you.

[@MegS-econ-maths]

@@xampap such a kind comment, thank you

[@peterkimber6020]

One of the best videos I've seen. Really helpful; thanks!

[@MegS-econ-maths]

Thank you for taking the time to leave such a lovely comment.

[@divanoelofse8457]

This was a very clear and concise explanation. Thank you very much! You've really helped me.

[@MegS-econ-maths]

This is so sweet, thank you for taking the time to comment!

[@feelixx.d]

Thanks for the explaination, Meg!

[@NE0ZONE]

thank you so much! you made this so easy and interesting!

[@MegS-econ-maths]

You're so welcome!

[@andrewsmith3613]

When using a Cobb-Douglas production function, the golden rule savings rate will always equal the exponent on k, which represents capital's share of income.

[@MegS-econ-maths]

You’re right, it does :). I don’t like to announce this fact for a couple of reasons: 1) most exams require to see your workings of how to get there 2) it’s a result that is specific to a basic Solow model with a Cobb-Douglas production function (as you mentioned) and I’ve found students forget these assumptions need to be met and then go on trying to apply this once the model changes etc

[@andrewsmith3613]

I agree, it is good pedagogy to go through the process in full. Thank you for your video. I will use it with my A2 students who are preparing for the Oxbridge admissions process.@@MegS-econ-maths

[@TheBobbyBoucher]

You made this easy to understand thanks

[@Adriana-wl6rw]

you are way better than my prof

[@Sinaxtx2562]

Amazing ! Thank u and keep going

It has helped me a lot

[@MegS-econ-maths]

Yay so nice to hear!

[@aqasaf]

how do you find that capital in steady state is equal to 64?

[@MegS-econ-maths]

Watch the first video 😊

[@Strwbbe]

TYSM!!

[@Economicstrack38]

Good explanation

[@lostcatto8553]

good vid ^^ could you please explain what it means that production function is to the power of a fraction? what else could it be to the power to?

[@MegS-econ-maths]

Hey, if I remember correctly I explained about the powers and how it affects the shapes in the part 1 video :)

[@Adriana-wl6rw]

how would i find the golden level of s?

[@MegS-econ-maths]

You have d=sf'(k) as the golden rule condition. Fill in for d and sub in Kgold and rearrange for s

[@Adriana-wl6rw]

@@MegS-econ-maths thanks!!! you prevented another mental breakdown before my exam😆

[@MegS-econ-maths]

@@Adriana-wl6rw good luck!

[@user-cx5wq9rn6e]

your accent is suu cutiee

[@jhon-snowebenzeracheampong3575]

Are you married ? can we get married if you are not ? These brains are very active

[@MegS-econ-maths]

Haha best comment I’ve ever received

[@jhon-snowebenzeracheampong3575]

You’re lovely

[@izrulibrahim3769]

That accent!

[@MegS-econ-maths]

Hahah I hate my accent!!

[@munkymabaso2722]

Dude please slow down😂😅

[@MegS-econ-maths]

You do realise you can choose x0.5 on the video, right?