Golden Rule

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August 31, 2024 4 min read Definitions
Biological Interest Rate: Rate Equal to Population Growth
Economics Finance Interest Rate Population Growth Overlapping Generations Economy Golden Rule Consumption Allocation
A rate of interest that aligns with the growth rate of population in an overlapping generations economy, optimizing consumption between generations.
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August 31, 2024 4 min read Definitions
Optimal Growth Theory: Analyzing the Best Economic Growth Path
Economics Finance Economic Growth Investment Utility Golden Rule Optimization
Optimal Growth Theory is the study of balancing the trade-off between current and future consumption to determine the best growth path for an economy. This involves reducing current consumption to finance investment, which can result in greater future utility.
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