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solowexamhandout

# solowexamhandout - change and population growth(population...

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Econ 365. Maria Muniagurria Solow Model Equations (I) Solow with population growth and no technological change. (population = # of workers) (1) Y = K " L 1- " v (2) L = n , S= s Y, C = (1 - s) Y (3) K = s Y - * K v (4) K = s (Y / K) - * Y= output, K= capital, L= labor Define new variables : y = Y/L (output per worker) , k= K/L (capital per worker) (5) k = s y - ( * + n ) k (II) Solow with technological
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Unformatted text preview: change and population growth (population = # of workers) (1) Y = K " (AL) 1-" v v (2) L = n , A = g S= s Y, C = (1 - s) Y (3) “ K = s Y - * K Define new variables : ˜ ˜ k = K / L A (capital per effective unit of labor), y = Y / L A (output per effective unit of labor) ˜ ˜ ˜ (4) “ k = s y - ( * + n + g) k...
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