Sunday, March 27, 2011

Girdle Holds Tummy In

Solow Solow model - Terms of steady-state product

sy = (n+g+\delta)k \, equality, we can replace the capital, thus obtaining the steady-state capital.
\frac{K^*}{L}=A\left(\frac{s}{\delta+g+n}\right)^\frac{1}{1-\alpha}
.
Furthermore, using we get: Template: Equation In steady state, it is possible to determine the following conclusions:

* Increases the level of technology produce more output per capita steady. Also, greater labor force have a positive impact on the stationary product. Conversely, increases in the rate of population growth, and higher depreciation, would result in low per capita effective stationary products.
* At steady state, since \Delta k=0\,, the growth rate of total output is equal to n + g and the rate of growth of output per capita is equal to g. The per capita product would grow only steady state growth rate of technology.

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