Increasing the Saving Rate: An Analysis of the Transition Path

  • Laurence S. Seidman
  • Kenneth A. Lewis
  • Winston W. Chang
  • John Conlisk
Chapter
Part of the Recent Economic Thought Series book series (RETH, volume 28)

Abstract

Suppose an economy permanently raises its saving rate. In the neoclassical growth model of the late 1950s, the economy attains an attractive new steady-state with higher per capita output and, provided the new saving rate does not exceed Phelps’s golden rule rate, higher per capita consumption. The early steady-state papers tempted readers to look longingly at the final steady-state and ignore the discomforts of the journey that might be required to reach it.

Keywords

Technical Change Saving Rate Benchmark Model Transition Path Adjustment Time 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.
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Copyright information

© Springer Science+Business Media New York 1993

Authors and Affiliations

  • Laurence S. Seidman
    • 1
  • Kenneth A. Lewis
    • 1
  • Winston W. Chang
    • 2
  • John Conlisk
    • 3
  1. 1.University of DelawareUSA
  2. 2.State University of New York at BuffaloUSA
  3. 3.University of California at San DiegoUSA

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