Solow Solow model - Terms of steady-state product
equality, we can replace the capital, thus obtaining the steady-state capital.
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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 , 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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