Unformatted text preview: after steady state is achieved the rate of gro~1h in this chapter is zero at any choice of savings rate. Although Japan did have a higher savings rate that many other countries the contribution of high saving to gromh in Japan should, however, eventually comes to an end. 1. The Paradox of Saving Revisited Using Figure 15-7, you can see that there is a higher gromh rate in transition after the higher permanent savings rates. This certainly lasts for I year and 10 years but is very small after 50 years. S. The Determinants of Output per Worker in Steady State a. A higher saving rate would eventually lead to higher output per worker b. In the steady state, the output per worker would be the same. Because a larger proportion of the population is working, there would be higher output per capita....
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- Spring '11
- Purchasing Power Parity, Stock and flow, Capital accumulation, Saving, f Saving Revisited