UWAGI O „ZŁOTEJ REGULE” AKUMULACJI KAPITAŁU RZECZOWEGO I LUDZKIEGO W KONTEKŚCIE ZAGADNIENIA MAKSYMALIZACJI DOBROBYTU
Loading...
Date
2009
Authors
Advisor
Editor
Journal Title
Journal ISSN
Volume Title
Publisher
Wydział Prawa i Administracji UAM
Title alternative
REMARKS ON THE “GOLDEN RULE” OF ACCUMULATION OF REAL AND HUMAN CAPITAL IN THE CONTEXT OF SOCIAL WELFARE MAXIMISATION
Abstract
The subject of the paper is social welfare maximisation in a neoclassical model of economic
growth, extended by the accumulation of human capital. After introducing the model and
characterising the behaviour of the economic system on the so-called balanced growth path, Phelps’
“golden rule of accumulation” is used to establish the values of the rates of investments (into real and
human capital) maximising the level o f the long-term growth path of per capita consumption. At the
same time the analytical limitations o f this conception in the context of the welfare maximisation is
shown. Overcoming those limitations necessitates a direct reference to the preferences of individual
economic agents over (per capita) consumption streams. Realisation of this demand finds its formal
expression in formulating and solving a dynamic optimisation problem, based on the initial growth
model. Finally, this procedure serves to find the specific character o f preferences of individual agents,
in the light of which the values of investment rates resulting from Phelps’ rule are the optimal values
(on the balanced growth path), for the achievement of which, according to the model, the economy
should strive.
Description
Sponsor
Keywords
Citation
Ruch Prawniczy, Ekonomiczny i Socjologiczny 71, 2009, z. 1, s. 105-122
Seria
ISBN
ISSN
0035-9629