The Ramsey-Cass-Koopmans Model

An interactive visualization of the RCK model, which describes a representative agent choosing consumption and savings over time.

Use the sliders to see how changing the parameters affects the steady-state levels of capital (k*) and consumption (c*).

α: 0.38

δ: 0.060

n: 0.010

g: 0.020

ρ: 0.010

γ: 2.00

c = k^α - (δ + n + g)k

c = k^0.38 - (0.060 + 0.010 + 0.020)k

αk^α-1 = ρ + δ + γg

0.38k^-0.62 = 0.010 + 0.060 + 2.00 * 0.020

k* = 7.39