Neoclassical growth model - 2 groups Select sample ----------------------------------------------------------- c=c0+c1*y samples ----------------------------------------------------------- Convergence Kusnets curve Startup company Saving alone Slavery 1 Slavery 2 Slavery forever Slavery limit Attractor 1 Attractor 2 Strange attractor Spiraling outward Spiraling inward Economic cycle Growing economy Unstable 1 Unstable 2 Unstable 3 ----------------------------------------------------------- c=(1-exp(-y*(1-c1)/c0))*c0+c1*y samples ----------------------------------------------------------- Convergence Kusnets curve Inequality 1 Inequality 2 Inequality 3 Inequality 4 Inequality 5 Inequality 6 Unstable 1 Unstable 2 Unstable 3 ----------------------------------------------------------- golden rule samples ----------------------------------------------------------- Convergence Kusnets curve 1 Kusnets curve 2 Unstable 1 Unstable 2 Unstable 3 -----------------------------------------------------------   [?] Production: y = A * kα = Y/L = 1/L * A * Kα * L1-α Consumtion: c = min { y , c0 + c1 * y } or                  c = (1-exp(-y*(1-c1)/c0)) * c0 + c1 * y or                  c = min { y , max { (1-α)*y , c0 } } (golden rule) Saving: s = y - c Change in capital: Δk = s * y - k * ( δ + n ) Change in population: ΔL = L * n   y = output/income per capita k = capital per capita c = consumption per capita s = saving per capita δ = capital depreciation n = population growth rate
y= * k ^ c=11-exp(-y*(1-c1)/c0)golden rule * + * y δ= n= k0= L0=	y= * k ^ c=11-exp(-y*(1-c1)/c0)golden rule * + * y δ= n= k0= L0=
One group works part time for the other one with fair wage w=(1-α)*Y/L      steps   ©