THE GOLDEN RULES OF ACCUMULATION UNDER THE N-CAPITAL ECONOMIC GROWTH MODEL
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The paper aims to theoretically determine the golden rules of capital accumulation - as defined by American economist Edmund S. Phelps - under the 'N-capital' economic growth model based on a uniform macroeconomic production function, E greater than 0. With E=1, the macroeconomic production function discussed in the paper is characterized by constant scale effects (as in the case of neoclassical growth models developed by Solow, Mankiw, Romer, Weil, Nonneman, and Vanhoudt), the authors say, while with E lower than 1/E greater than 1 the scale effects of the production process decrease/increase. The authors show that the growth model analyzed in the paper is characterized by asymptotic stability in a certain environment. They also examine the long-run growth paths of basic macroeconomic variables in the analyzed model and identify the golden rules of capital accumulation under the N-capital growth model when the production process leads to scale effects.
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