1
$\begingroup$

In a textbook application I try to apply Solow model to the US economy. What will be a ballpark estimate of the saving rate and the depreciation rate?

Edit: To follow up, assume Cobb-Douglas with labor share 0.3. Assume Y=16916*10^9 and K-22541*10^9 and L=151.4*10^6. Then A=3*10^3. Then s-0.3 and delta-0.05. Does this seem make sense?

Improve this question
$\endgroup$
2
  • 1
    $\begingroup$ You tell us, you are the one applying it! $\endgroup$
    – Giskard
    May 13, 2018 at 20:03
  • $\begingroup$ Penn World Tables has savings and depreciation rates $\endgroup$
    – Pedro Cavalcante
    May 13, 2018 at 21:31

0

Reset to default

Your Answer

By clicking “Post Your Answer”, you agree to our terms of service, privacy policy and cookie policy

Browse other questions tagged or ask your own question.