1 / 5

Principles of Macroeconomics ECON 401

Principles of Macroeconomics ECON 401. Dr. Andrew L. H. Parkes “A Macroeconomic Understanding for use in Business”. 卜安吉. Solow Growth Model. Robert Solow began the Growth Model Productivity is what the model examines Output per worker (or output per person)

joanparker
Download Presentation

Principles of Macroeconomics ECON 401

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. Principles of MacroeconomicsECON 401 Dr. Andrew L. H. Parkes “A Macroeconomic Understanding for use in Business” 卜安吉

  2. Solow Growth Model • Robert Solow began the Growth Model • Productivity is what the model examines • Output per worker (or output per person) • Productivity depends upon capital per worker • Increases in capital per worker increases productivity Principles of Macroeconomics, Day 4

  3. Solow Growth Model • Labor is the most important input! • Increases in population decrease output per worker (as they decrease capital per worker) • Capital has about a 25% share, whereas Labor has a 75% share of output • Technology is also an important component Principles of Macroeconomics, Day 4

  4. Solow Growth Model Long-run growth results from improvements in technology and human capital. We find that human capital is the most important component of productivity! Principles of Macroeconomics, Day 4

  5. Human Capital Remember that Human Capital is not JUST education but ALL training, experience and on-the-job learning too! Health care while a side issue is also important. Savings is also a very important component of productivity (output per worker)! Principles of Macroeconomics, Day 4

More Related