Capital accumulation and growth. As a consultant to a major consumer goods producer you are charged with surveying Treasure Island as a potential future market. You are asked to forecast economic growth in a hurricane situation. Technical reports on the country reveal that the share of income paid to capital is = 1/3, capital depreciation is = 0.15 per year, and the saving rate is s = 0.25 per year. The following equations describe the steady state capital stock and output in the Solow model. Kss = s A 1 1 L Yss = AKss L