Problem Set 4 - Homework#4 ECON 402 Winter 2016 Due Date...

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Homework #4 ECON 402 Winter 2016 Due Date: Friday, January 29, 2016 1. Discuss the following proposition: “An increase in the saving rate will increase the equilibrium capital-output ratio and so increase both output per worker and the rate of economic growth in both the short run and the long run.” 2. Could differences across countries in population growth rates account for the persistence in
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Unformatted text preview: income disparity across countries? Use the Solow growth model to address this question and discuss. 3. In the Romer endogenous growth model, what three factors determine an economy’s growth rate? Briefly explain (and ideally show in an impulse-response diagram) how a change in each factor affects growth....
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  • Spring '14
  • Wassell
  • Economics, Macroeconomics, Population Growth Rates, Endogenous growth theory, Exogenous growth model, Romer endogenous growth

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