Production saving model
Letst$kt+ 1 /ktα=kt+ 1 /f(kt)be the saving rate.ct=f(kt) kt+ 1hence
kt+ 1
ct =kt+ 1
f(kt) kt+ 1 =kt+ 1 /f(kt)
1 kt+ 1 /f(kt)=st
1 st.
Also
st+ 1 = kt+^2
f(kt+ 1 )=f(kt+^1 ) ct+^1
f(kt+ 1 )= 1 ct+^1
f(kt+ 1 )