Golden rule
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Golden rule is the saving rate in the Solow growth model that leads to the steady state in which consumption per worker (or consumption per efficiency unit of labor) is maximized.
Definition
According to Macroeconomics by Mankiw (7th edition),
- Golden rule. The saving rate in the Solow growth model that leads to the steady state in which consumption per worker (or consumption per efficiency unit of labor) is maximized.
