ANALYTICAL AND NUMERICAL EXPRESSIONS OF THE GOLDEN RULE OF CAPITAL ACCUMULATION

Abstract

This article examines the importance of consumption and savings rate for economic growth and improvement of living standards. It explores the concept of the golden rule of savings, which represents the optimal savings rate for sustainable economic development. The paper discusses the relationship between consumption, savings and investment. In order to illustrate the relationship between the savings rate and sustainable consumption, the Solow – Swan model is studied. Using the Solow model, analytical and numerical solutions are presented to determine the sustainable savings rate and consumption rate by the golden rule of savings rate.
The article emphasizes the importance of �inding a balance between current consumption and future investment for long-term economic growth and well-being of present and future generations