2012年3月21日水曜日

Saving Rate Differenece in Solow Growth Model

The elasticity of output with respect to the saving rate is α/(1-α)
 (Check y*=(k*)^α=(s/[n+g+δ])^(α/[1-α])!)

Thus, " a 10 percent increase in the saving rate raises output per worker in the long run by about 5 percent relative to the path it would have followed."

Romer, "Advanced Macroeconomics"

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