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.
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
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
never understood a video better than this. God bless you.
@@xampap such a kind comment, thank you
One of the best videos I've seen. Really helpful; thanks!
Thank you for taking the time to leave such a lovely comment.
This was a very clear and concise explanation. Thank you very much! You've really helped me.
This is so sweet, thank you for taking the time to comment!
Thanks for the explaination, Meg!
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.
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
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
thank you so much! you made this so easy and interesting!
You're so welcome!
You made this easy to understand thanks
Amazing ! Thank u and keep going
you are way better than my prof
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?
Hey, if I remember correctly I explained about the powers and how it affects the shapes in the part 1 video :)
It has helped me a lot
Yay so nice to hear!
how do you find that capital in steady state is equal to 64?
Watch the first video 😊
Good explanation
TYSM!!
your accent is suu cutiee
how would i find the golden level of s?
You have d=sf'(k) as the golden rule condition. Fill in for d and sub in Kgold and rearrange for s
@@MegS-econ-maths thanks!!! you prevented another mental breakdown before my exam😆
@@Adriana-wl6rw good luck!
Are you married ? can we get married if you are not ? These brains are very active
Haha best comment I’ve ever received
You’re lovely
That accent!
Hahah I hate my accent!!
Dude please slow down😂😅
You do realise you can choose x0.5 on the video, right?