RelativeResourceManager 1

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Unformatted text preview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output Y* is given by Y*/N = f(K*/N). + $ + (0 * ( % * Putting the facts together when A=1, i.e. no technological progress, we have: 1. 2. The saving rate has no effect on long-run growth rate of output per worker, which is zero. But, the saving rate determines the level of output per worker in the long run. 3 + (0 @)C @L1)C @L)C B#)C $1 $ B#)C B#)C B#)C BL)C BL1)C B)C - $ + (0 * ( % * Putting the facts together (remember, we assumed no technological progress), we have: 1. 2. 3. The saving rate has no effect on long-run growth rate of output per worker, which is zero. But, the saving rate determines the level of output per worker in the long run. An increase in the saving rate will lead to higher growth of output per worker for some time, but not forever. 5 ) % + (0 0 - + (0 *$ % In designing policy, can the government affect the saving rate, and if so, what should it aim for? Can affect by varying public saving (G-T) Can also affect by taxation (give tax incentives to savers) 6 1 *1 $ + (0 2 A particularly prevalent topic in the U.S. today, which raises many concerns in media and among politicians, is that the saving rate in the U.S. was, until the crisis hit, negative – people lived beyond their means… as does the government! Should we worry? – the debate depends in part on whether you look in the short or long run. Although in the long run, the rate of growth of output per capital will not change, the level would, in general. In the short- to medium-run, the increase could also increase the rate of growth. , - ) + 3 $% We have thought of capital as physical capital – machines, equipment, factories, etc. But there is another important form of capital – human capital, i.e. level of education and training of workers (set of skills in the economy). Extend the production function: Y/N = f(K/N, H/N). A higher skill set is likely to make a worker more productive (more output per worker on average). This suggests that the way in which society invests in human capital (in its education system, for example) is as important as investment in physical capital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gA+gN) B) C $ B) C BL) C B) C +0 $% @) C ( +gA+gN) B) C $ B) C I ( +gA+gN) B) C B) C & ' & $ B) C $ B) C J ( +gA+gN) B) C B) C $& $ B) C A ( +gA+gN) B) C B) C $# # BL) C B) C +6 * $# $# # : . (0 # B) C #& @) C $# # 4 . C $ & ' & # &C @)C @ &'&# #& & ' & # # & F &C # #( # $ ( $& ' & B)C B ; $ & & & '# # # # +, + (0 $ $ ( & # ' # ' $ # & '# ## # ' & # # & 4 ## $# & # $: #( # ## $ #( # ( # # $ & '# #( # ( ' $ $. # #( # ( $ # $ ' # %( # 3 + (0 @) C @) C @) C B) C ( +gA+gN) B) C $1 $ B) C B) C B) C B) C B) C 3 ) % + (0 3 7 )( %( & $# $# 7 EN # ( $1 $( # & & $ ( & $$: # # $( +/ * # # & $ $( (% # $# EN >( #$ # 2! #$ / %$1 $#% EN $( # # # # 4 # $ # $ 4 # $ &$ $' #% # %# # $ # .# #$ 4( # #$: % % $# ( & # $$ 3+ $ ( #$. $ # $# # $ $ (( ( 4 . $ # %$ # ( #$. ' # $# ( ) ( $ $$ # # "## ( $ 4$ : $ # $ $# % & (( # & %( % # (# (( < # $ #% 4# '# # %( $ O $ 4$# # #% # # $ #4 ' # $# % $ (( ( 4# # $ $ %( # #: # # #4 # # #% # ( $ '# %$ 4 # % # $' # # 4 #( % # $. & # # '$ $ ( # # (( ( 4 # $& ( # # '$ $ # $ 4P #: ' # $ $ (# % 8 ( # # $ $ #$ $$ % # = 33 7 < 8% # $# ,0+ $' ( #$ & & '# ' # $# #' '' ## & @)C >( ,- : + & $ & '# $ # ( 2! % # ,0 1$ $# # % $# * (# %# # # &@A& F&C : # # & # $ & '# = & #. %' % P $#% 4$ % &@ I & ## ' $ # &@ A & 3- $ $# & & '# ,0+ $ # %( $ & (# > $$ # # $' ' $ $# # % & & @)C ,& ( & $$. # # #( # & '# ( & $$ % % & '# $ #% ,0 1$ $ % # # # & ( & $$. # $ ' (# %# (# & ( & $$ > # ( # & '# # + & ( 2! $% %& # # $ # # $# # 4 # $# # & & '# # ,- 1$ % # 35 1 9: 2 $' * $ ( $' #' $# %( $( '% ' $ $# $ # $. # $ $# (# $$ & ( * % $# # # & EN $( # $( ## EN $# % $#$ # & $$ % # $ %$ ( $ &' '# # #$# $# : # #. ($. 1$. Q 1$. ( $. # ($ # # $ # $' $ %( # & #% &# # $#$ # % 30 7 # ( & $$. %P # & 4((# $ P # $ $# # * # &: ' & = & $ $# # # ( & $$. #% & #( # # $ (( # $# # # % ' $# $# # $: $# 4 $ $# %$. '$ & $# $ # (# . ( # # '$. # # $# '$ #& % $ (# # & &$ % (# & # . 36 %( % # $# # # $ $ & '# M 7, < # $ 4 $# $# $ * % 8 # $$. & # $ # #$ $ $# $$ $4 % %= ' $ $ % 8 $ & #: 4 # ( # #4 C 'B $ $# E ( (# $ $$ #4 #( 4 C# 3, 7 + # ( ; * & & '# # ## ## #$ % 4: .' # . .% $ 0 > (# 7 # $ (# $ # $. # $ # ## # # $ > $# 4 %$ $ : C* A F ! # $% .> $# 4 # % ( # $ $ % ## / &' $ %(# ( AR 4( ?' .% $ $$ % $ # # #% #( & $ $$ # # $ # ) %( #. ' '# $ ## 4 # - # #$ #. # $ %# # % & '# #( # # $ & < #O% ,,, @A" B.! * # % # # #$ # # * 1 ( + & # $ $$$ # $# ( %( # & 4 ' % & 8 % $$ % & # $ ' # # % $. & $ & 4 # %( # $ & # 4& &$ & # ( ## $ $$ & % $: ' # % $ $#$ $ 4 #$ %% $$ %#& # = ( $ '' # # ## # # $ #& ' ,,0 : $ # $# % # $ $$ % & 4 ' % & # / $$ * & '# ( . # $# % # $ $#$ / ' * $% # #4 #$ % # & # :( # $( & $#% # # # $ $ &) # &$ "%% ( $( # . # # % %( # # $$ $ $ &# #' # '# & $: $ # - ...
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