1 / 10

Solow Growth Model: The Steady State

Solow Growth Model: The Steady State. = 0. Effect of Increasing the Investment Rate on the Steady State. Speed of Convergence to the Steady State. k ss = (A γ / δ ) 1/(1- α ). Δ k/k = γ Ak ( α -1) – δ = γ Y/k - δ. Predicted Versus Actual GDP per Worker.

moriah
Download Presentation

Solow Growth Model: The Steady State

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. Solow Growth Model: The Steady State = 0

  2. Effect of Increasing the Investment Rate on the Steady State

  3. Speed of Convergence to the Steady State kss = (A γ/ δ) 1/(1-α) Δk/k = γAk(α-1) – δ = γY/k - δ

  4. Predicted Versus Actual GDP per Worker

  5. Relationship Between Income per Capita and Population Growth

  6. The Malthusian Model • Fixed land • Decreasing returns • to labor

  7. Breakdown of the Malthusian Model in Western Europe:KAPITALism

  8. The Solow Model Incorporating Population Growth Δk = γy – nk - δk  kss = [A γ/(n + δ) ] 1/(1 – α) yss = A 1/(1 – α) [γ/(n + δ) ] α/(1 – α)

  9. Mortality Transition:Life Expectancy in Developed Countries Life Expectancy in Developing Countries

  10. Fertility Transition: Total Fertility Rate in the United States, 1860–2005

More Related