Article
Licensed
Unlicensed
Requires Authentication
How Much Should a Nation Save? A New Answer
-
Olivier de La Grandville
Published/Copyright:
April 12, 2012
We introduce a formula for the optimal savings rate in an economy driven by an investment policy reflecting competitive equilibrium. The reasonable numbers generated by the formula should be of help not only to assess our present situation, but also to prepare our future. Moreover, this paper provides two theorems correcting a widely spread error in economic growth theory, namely that a steady state can be asymptotically reached only if technical progress is labor-augmenting. We finally show that the magnitudes of the optimal savings rates are highly robust to very different, S-shaped evolutions of population and technology. The paper closes with a daring conjecture.
Published Online: 2012-4-12
©2012 Walter de Gruyter GmbH & Co. KG, Berlin/Boston
You are currently not able to access this content.
You are currently not able to access this content.
Articles in the same Issue
- Article
- Introduction to the Current Issue
- How Much Should a Nation Save? A New Answer
- Macroeconomic Stabilization Policies in Intrinsically Unstable Macroeconomies
- Expectations Dynamics: Policy, Announcements and Limits to Dynamic Inconsistency
- Routes to Complexity Induced by Constraints in Cournot Oligopoly Games with Linear Reaction Functions
- Technological Adoption with Imperfect Markets in the Italian Economy
- The Macrodynamics of External Overborrowing and Systemic Instability in a Small Open Economy
- The Convergence of Economic Developments
- Continuous-Tme Econometrics of Structural Models
- Economic Stability and the Choice of the Target Inflation Index
Articles in the same Issue
- Article
- Introduction to the Current Issue
- How Much Should a Nation Save? A New Answer
- Macroeconomic Stabilization Policies in Intrinsically Unstable Macroeconomies
- Expectations Dynamics: Policy, Announcements and Limits to Dynamic Inconsistency
- Routes to Complexity Induced by Constraints in Cournot Oligopoly Games with Linear Reaction Functions
- Technological Adoption with Imperfect Markets in the Italian Economy
- The Macrodynamics of External Overborrowing and Systemic Instability in a Small Open Economy
- The Convergence of Economic Developments
- Continuous-Tme Econometrics of Structural Models
- Economic Stability and the Choice of the Target Inflation Index
