Lecture 3 37

Lecture 3 37 - d k f d k f dk dc gold = = − = ) ( ' *) (...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Capital Stock and Welfare of the People The Golden Rule level of capital: Recall that: c* = f(k*) – dk* When we can choose k*, c* is maximised when:
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: d k f d k f dk dc gold = = − = ) ( ' *) ( ' * * Set the derivative to zero for a maximum (since the second derivative is negative):...
View Full Document

This note was uploaded on 04/03/2011 for the course ECON 2021 taught by Professor Mok during the Spring '11 term at HKU.

Ask a homework question - tutors are online