Based on the Solow model, this paper explores the mechanism of consumption rate on economic growth and the conditions under which the economy meets the optimal consumption rate through theoretical model deduction, and conducts empirical analysis using data from China from 1978 to 2013. The structure of this article is as follows: The first section discusses the relationship between the optimal consumption rate and the traditional Golden Law capital stock from the Solow model, and conducts theoretical analysis; The second section combines the actual economic data of China, establishes an econometric model for analysis, and then derives the optimal consumption rate of the Chinese economy; Based on the Solow model, the third section defines the optimal consumption rate from the perspective of capital-output ratio and conducts quantitative analysis; Section IV proposes policy implications for the study of optimal consumption rates based on theoretical and empirical conclusions.
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