1. Use the Solow growth model to demonstrate how differences in access to technology can cause...

1. Use the Solow growth model to demonstrate how differences in access to technology can cause highly-developed countries and lesser-developed countries can both at low rates and never converge. Include in your answer a description of the differences in access to technology and illustrations of the consequences for long-run capital stock per worker, long-run output per worker, and the time paths of output per worker from the short-run to the long-run.

2. Use the Solow growth model to demonstrate how differences in population growth rates can cause highly-developed countries and lesser-developed countries can both at low rates and never converge. Include in your answer a description of the differences in population growth rates and illustrations of the consequences for long-run capital stock per worker, long-run output per worker, and the time paths of output per worker from the short-run to the longrun.

3. Use the human capital growth model to demonstrate how differences in investment in education and training can cause highly-developed countries and lesser-developed countries to grow at different rates and never converge. Include in your answer a description of the differences in education/training and illustrations of the differences in the paths for human capital accumulation and output-per worker.

Expert Solution

Rahul Sunny answered 2 years ago

Use the Solow growth model to demonstrate how differences inpopulation growth rates can cause highly-developed...

Use the Solow growth model to demonstrate how differences in population growth rates can cause highly-developed countries and lesser-developed countries to both grow at low rates and never converge. Include in your answer a description of the differences in population growth rates and illustrations of the consequences for long-run capital stock per worker, long- run output per worker, and the time paths of output per worker from the short-run to the long-run.

Critically access the theoretical propositions of the Solow neo-classical model of growth. How does endogenous growth...

Critically access the theoretical propositions of the Solow neo-classical model of growth. How does endogenous growth model help to address some of the weaknesses of the Solow model? Illustrate the implications of technical advances and saving rates increase on growth according to both of these approaches.50 marks

In the Solow growth model, if we assume the standard properties of the production technology, which...

In the Solow growth model, if we assume the standard properties of the production technology, which are discussed in class, the economy tends to move toward the steady state with positive capital stock per worker.

Which of the following is true about the Solow Growth Model? a. In the Solow Growth...

Which of the following is true about the Solow Growth Model? a. In the Solow Growth model consumption per person always rises as k rises b. At a steady state the economy keeps growing with aggregate K, Y, C for example all rising over time c. At steady state the following condition must always hold at k*: sy=(n+d)k d. When the economy is below steady-state level of capital-per-worker then savings per worker is higher than breakeven investment e. Golden rule...

What drives economic growth in the Solow model? What reduces economic growth in the Solow model?

Consider the Solow Growth model with constant population and technology, as follows. Yt = F(Kt ,...

Consider the Solow Growth model with constant population and technology, as follows. Yt = F(Kt , Lt) = K 1/3 t L 2/3 t . (1) Yt = Ct + St (2) St = σYt (3) Kt+1 = (1 − δ)Kt + It (4) St = It (5) Where Yt is output in period t, Kt is capital stock in period t, Lt is labor in period t, Ct is consumption in period t, St is savings in period t,...

Can the solow model explain economic growth if there is an increase in the manufacturing sector...

Can the solow model explain economic growth if there is an increase in the manufacturing sector or aggriculture sector in a country? For example, how would a recent increase in manufacturing or aggriculture affect the solow model? Also, an increase in capital or investment only leads to short term growth right? The only way for long term growth is through technological progress?

solow growth model describes what

1. In the Solow growth model, the rate of economic growth in the long run depends...

1. In the Solow growth model, the rate of economic growth in the long run depends on a. the rate of progress of the “effectiveness” of inputs or the growth rate of total factor productivity b. the population growth rate c. the savings rate d. the level of education of the population 2. The rate of economic growth of output per worker in the US between 1800 and 2011 a. depended mostly on changes in TFP (total factor productivity) b....

1. i) What are the main features of the Solow growth model? Explain how the steady...

1. i) What are the main features of the Solow growth model? Explain how the steady state level of capital determined in the Solow growth model. Why is the steady state stable? Explain your answer with a diagram. ii) Explain the main features of the balanced growth path implied by the Solow growth model. iii) Can austerity policies can have a positive effect on growth? Using economic knowledge, assess that statement in the context of the Solow growth model.

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