handoutdata06 - Data Facts 1 Growth (long term trend) facts...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Data Facts 1 Growth (long term trend) facts 1. Real output grows at a relatively constant rate (i.e. if y t =ln ( Y t ) , then y t = g y > 0). 2. The stock of real capital grows at a relatively constant rate greater than the growth rate of labor hours (i.e. if k t =ln( K t )and h t =ln( H t ), then k t = g k >g h = h t ). That is, the capital/labor ratio is growing. 3 . Thereisnotrendinthenumbero fhoursperworkera fterWWII . 4. The growth rate of real output and capital are approximately equal (i.e. g y = g k ). That is, the capital/output ratio is constant. 5. Real pro f tability of capital is roughly constant. 6 .Thesha re so fincomedevo tedtocap i ta l ³ ( r + δ ) K Y ´
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 2

handoutdata06 - Data Facts 1 Growth (long term trend) facts...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online