Technological progress should decrease the required capital output ratio giving

Technological progress should decrease the required

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Technological progress should decrease the required capital-output ratio, giving more growth for a given level of investment The mechanisms of Econ growth & development would be simply a after of increase Saving rate for US less than 12% The main obstacles and constraint in most countries, causing relatively low level of new capital formation Sources of saving gap: international saving Foreign aid Private foreign investment International saving - loans Contributions of Harrod This model justices massive transfers of capital and technical assistance from development to less developed nations The HD model what determines GR 1 Y fck 2 K capital 3 s saving rate 5 saving of Y ST 4 5 investment I s investment change in capital ok 6 Capital output ratio 0 c how much eachunit of T is K c t I efficiency ofcapital translating into output 8 at 8k ok OY d ok
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theHDmodel Y FCK direct relationship bit K Y by a constant k capitalstock E 8 E measures efficiency S net saving rate of T c capital output ratio 0 C how muchk change as I change OT E o kC how much outputis I saving investment cidentity ofsaving investment produced by eachunit of K I net investment ok S s f so SY S I ok c OY C 0 of ok s C c of E efficiency of capital accumulation E OI 0kt OT C Er E _o f a wyatuhg.YY.im of the HD mode song investment tells under deep cod couty what tooeo.ci saving rate reduce technology ear increase the output a ratio xuevetore.te.ch ogy t newww eto agave names G the keg is given to the role of saving a invesima of vi storm
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  • Fall '17
  • Ana De Andrade
  • Capital accumulation, Linear Growth Models

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