Econ 102 Winter 2012 Lecture Note 5 - Solow + Intertemporal Consumption The Golden Rule The last concept of the Solow Model is the golden rule.1 So far we have blindly taken all of the variables in the model as given. This might be troubling, especially t
Econ 102 Winter 2012 Lecture Note 4.5 - Solutions to LN 4
Solutions
1. True or False (and explain): In a Solow model with g = 0, wages will always increase at the same rate as population growth. False. be:
wt = (1 - )Akt
In the Solow model without techno
Econ 102 Winter 2012 Lecture Note 4
The Solow Model
A Note on the Steady State We showed graphically and mathematically that the economy naturally goes to the steady state if there are no changes in exogenous variables. Since our focus is on long-run econ
Econ 102 Winter 2012 Lecture Note 3
The Solow Growth Model (with no growth)
The Solow model is a simple model of economic growth, with one good that is produced by a Cobb-Douglas production technology. The good is used for either consumption (C) or invest
Econ 102 Winter 2012 Lecture Note 2 - Economic Growth
GDP Growth
To study economic growth, we can compare GDP from time period to time period. The simplest measure would be to look at GDP . For example, in 1990, the US GDP was about 5.8 trillion dollars,
Econ 102 Winter 2012 Lecture Note 1 - Measuring the Economy
In this class, we will learn tools and methods to analyze the economy at the country and global level. We will use models of economies to study long-run growth rates, business cycles (alternating