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# lecture4 - Economics 2: Growth (Solow Model II & III) c...

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Economics 2: Growth c ± Kumar Aniket Lecture 4, Week 7 c ± Kumar Aniket Economics 2: Growth (Solow Model II & III)

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Solow Model - II Deﬁnition (Solow Model II) The most basic Solow model with positive population growth and no technological progress. c ± Kumar Aniket Economics 2: Growth (Solow Model II & III)
Solow Model - II Deﬁnition (Solow Model II) The most basic Solow model with positive population growth and no technological progress. Assumption a) Positive population growth Δ L L = n > 0 c ± Kumar Aniket Economics 2: Growth (Solow Model II & III)

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Solow Model - II Deﬁnition (Solow Model II) The most basic Solow model with positive population growth and no technological progress. Assumption a) Positive population growth Δ L L = n > 0 b) no technological progress Δ A A = 0 c ± Kumar Aniket Economics 2: Growth (Solow Model II & III)
CRS Production Function Y = F ( K , L ) Constant Returns to Scale Production Function λ Y = F ( λ K , λ L ) where λ = 1 L Per Worker Production Function y = f ( k ) where y = Y L , k = K L c ± Kumar Aniket Economics 2: Growth (Solow Model II & III)

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Growth Rate of Capital Per Worker k t = K t L t Δ k t k t = Δ K t K t - Δ L t L t gr ( k t ) = gr ( K t ) - gr ( L t ) c ± Kumar Aniket Economics 2: Growth (Solow Model II & III)
k t = K t L t Δ k t k t = Δ K t K t - Δ L t L t gr ( k t ) = gr ( K t ) - gr ( L t ) Δ K t K t = Δ k t k

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## This note was uploaded on 12/21/2011 for the course ECON 3014 taught by Professor Michaelshaw during the Spring '11 term at HKU.

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lecture4 - Economics 2: Growth (Solow Model II & III) c...

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