Macroeconomics #permanent Macro
Evaluating the rate of saving
Q: Is the saving rate in US too low or too high compare with its golden-rule situation? That is, we have to compare the and the So if , in this case, if we increase the , we will increase the capital accumulation to reach higher steady state (see Solow Model) Now the problem is how to encourage people to save more? The famous method is to control the Tax