Download - Solow Model
Transcript
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a to b: same as FPM
K-intensive
L-intensive
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Divide Y=f (K,L) by L to express all variables in per-worker terms
Y/L=F(K/L,1)y=f(k)
We have diminishing returns to capital as in (4.3)
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production function
saving function
the amount of K needed b/c of n and d just to keep k constant
sy>(n+d)k
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