3. Recall that the saving curve in figure 4.4 depends on the average product of capital
per worker: y/k, and that y depends only on output per worker, not the absolute level
of labor or capital (see equation 3.2 on page 49). Therefore, the level of saving
depends only on the capital labor ratio; changes in the absolute levels of K or L do not
shift the curve. Constant returns to scale is a key assumption here because it was used
to derive equation 3.2. Given Y=A*F(K,L) and constant returns to scale,
multiplying Y by 1/L yields: Y/L=A*F(K/L,L/L) or y=A*f(k). If constant returns to scale
were not found, the output per worker would depend on the absolute sizes of K and L,
and not merely the ratio between them.
per worker: y/k, and that y depends only on output per worker, not the absolute level
of labor or capital (see equation 3.2 on page 49). Therefore, the level of saving
depends only on the capital labor ratio; changes in the absolute levels of K or L do not
shift the curve. Constant returns to scale is a key assumption here because it was used
to derive equation 3.2. Given Y=A*F(K,L) and constant returns to scale,
multiplying Y by 1/L yields: Y/L=A*F(K/L,L/L) or y=A*f(k). If constant returns to scale
were not found, the output per worker would depend on the absolute sizes of K and L,
and not merely the ratio between them.
4. An increase in n will increase the rate at which capital per worker is depleted over
time. This is illustrated on the graph by an upward shift in the horizontal line (as in
figure 4.6.) For any given savings rate, this will result in a lower steady state level of
capital and output per worker. However, the absolute level of output will continue to
increase. An economy with a faster rate of population growth will grow more quickly
after reaching its steady state.
time. This is illustrated on the graph by an upward shift in the horizontal line (as in
figure 4.6.) For any given savings rate, this will result in a lower steady state level of
capital and output per worker. However, the absolute level of output will continue to
increase. An economy with a faster rate of population growth will grow more quickly
after reaching its steady state.
1. Differences in the growth rates can be explained by differences in the factors that
determine the steady state level of income in each region. As saw in chapter 4,
differences in savings rates, population growth and technology can have significant
20
effects on the steady state level of income. East Asian countries are typically found to
have relatively private and public savings rates during the period. If we allow the
parameter “A” to represent not just technology but economic efficiency in general, then
other factors can also be identified. In particular, economists have focused on the legal
and political institutions (including corruption), the openness to trade, health and
education, and the relative size of the public sector as potential determinants of
economic efficiency. In most of these areas, the East Asian nations had an advantage
over the nations of sub-Saharan Africa. The theory of conditional convergence predicts
if countries start with the same level of capital per worker, countries with a relatively
high steady state level of output per worker will grow more quickly than the others.
The story of Africa and Asia seems to fit the theory.
determine the steady state level of income in each region. As saw in chapter 4,
differences in savings rates, population growth and technology can have significant
20
effects on the steady state level of income. East Asian countries are typically found to
have relatively private and public savings rates during the period. If we allow the
parameter “A” to represent not just technology but economic efficiency in general, then
other factors can also be identified. In particular, economists have focused on the legal
and political institutions (including corruption), the openness to trade, health and
education, and the relative size of the public sector as potential determinants of
economic efficiency. In most of these areas, the East Asian nations had an advantage
over the nations of sub-Saharan Africa. The theory of conditional convergence predicts
if countries start with the same level of capital per worker, countries with a relatively
high steady state level of output per worker will grow more quickly than the others.
The story of Africa and Asia seems to fit the theory.
2. The exogenous growth in technology would lead to positive growth rates in both
output and output per worker. The growth would come from two sources: the
technological improvement (A), and the increase in the capital per worker (k). The
contribution of each of these factors to growth rate in output per worker is given by
equation 5.8 in the text. The capital per worker grows because of additional savings
made possible by the higher level of output.
output and output per worker. The growth would come from two sources: the
technological improvement (A), and the increase in the capital per worker (k). The
contribution of each of these factors to growth rate in output per worker is given by
equation 5.8 in the text. The capital per worker grows because of additional savings
made possible by the higher level of output.
Всем привет! Как ваши дела, надеюсь отдохнули за выходные.
Прикрепляю кейс на эту неделю и требования к нему.
Прикрепляю кейс на эту неделю и требования к нему.