All Questions
Tagged with macroeconomics solow
72 questions
4
votes
1
answer
979
views
Data Set for Mankiw, Romer, and Weil 1992
I am trying to replicate the results of Mankiw, Romer and Weil 1992, and cannot seem to find the original data.
3
votes
1
answer
552
views
Wages in Solow growth model with savings = 0
I am trying to understand the change of wage rate and rental rate in the Solow growth model with s = 0. It is clear that capital per capita will approach 0 (due to depreciation of capital). Also is ...
- 224
-1
votes
1
answer
74
views
Here's a question about the solow model [closed]
At first, I was confused by how y keeps increasing after depreciation exceeds savings, then I finally found what was truly bothering me. The fact that when depreciation exceeds savings, capital per ...
- 1
2
votes
1
answer
530
views
The growth rate in the Solow model
Consider a very simple version of the Solow model with discrete time, a fixed population size and no technological progress (a fuller description of the assumptions is outlined here). Capital is at '...
user17900
0
votes
1
answer
295
views
How to Calculate the productivity multiplier?
Given a Cobb Douglas
$Y_t = A (K_t^\alpha L_t^{1-\alpha}) $
$ K_{t+1} = sY_t + (1-\delta) K_t$
How do we get the multiplier on productivity to be equal to $ \frac{1}{1-\alpha}$?
I understand ...
- 111
2
votes
0
answers
675
views
Solow Model - criticism of Harrod model
I have started out reading seminal paper of Solow - Solow Growth model. It starts out with discussing weaknesses in Harrod Domar Model, a simple model of economic growth which featured prior to solow'...
- 499
1
vote
1
answer
464
views
Solow model golden rule with my exact answer
In a perfectly competitive Solow economy with physical capital accumulation, population growth and a Cobb-Douglas production function, show that the “golden rule” steady-state would be reached if at ...
- 93
2
votes
0
answers
254
views
Improve my solution: Question on solow model
There is a question about Solow growth and Ramsey model,
compared to solow model, the Ramsey model is better to explain growth patterns across countries because it predicts a slower convergence ...
- 93
0
votes
1
answer
152
views
Sustainable growth in the long run [closed]
Suppose that, in addition to physical capital and labour, an economy requires a fixed factor and a non-renewable resource to produce the final good. Prove that an economy with these input requirements ...
- 63
2
votes
1
answer
3k
views
How is the Solow residual measured?
In the Solow model, we have the Solow residual often referred to as the level of technology A.
More particularly : \begin{equation} Y(t) = [K(t)]^{\alpha} [A(t)L(t)]^{1-\alpha} \end{equation}
Here ...
- 203
5
votes
1
answer
73
views
Macroeconomic Measures of Human Capital
How exactly do you measure human capital for a given country and what numbers are included in that measure.
The reason why I ask is because im interested in simulating the Mankiw–Romer–Weil version ...
- 8,847
4
votes
1
answer
2k
views
Solow growth model - analytic proof that Inada conditions imply steady state capital is increasing in the savings rate
Let's take the example of a generic Harrod-neutral (labor-augmenting) production function $f(k)$; all letters denote the growth rates they usually would. In the regular Solow growth model with the ...
- 43
0
votes
1
answer
8k
views
Effect of population growth on Solow steady state
My textbook says that:
Ratio of capital per capita to income per capita in the steady state is a positive function of s and an inverse function of η and δ. Thus, k*/y* is a constant. This means ...
- 1
1
vote
1
answer
211
views
What happens to aggregate C, K, and Y when TFP increases permanently?
I was wondering what would happen to aggregate capital, consumption and output (i.e. K, C, Y) in the Solow model with constant population growth (i.e. n > 0) and no technological growth (i.e. a = 0) ...
- 67
3
votes
2
answers
1k
views
Basic Solow Growth Model: Stability Proof
I am reading through McCandless "The ABCs of RBCs" this summer to get a preview of what I need to know for the coming Fall semester. It did not take long to find a statement that I can easily accept ...
- 178
1
vote
1
answer
84
views
How to estimate a constant elasticity of substitution for a country in a solow model including human capital and scarce resources
For my thesis I was looking for some help due to the facts of my little knowledge of econometrics. I appreciate any help whether its directly dealing with my question or literature advice.
Basically ...
- 93
2
votes
1
answer
800
views
Taylor Series Approximation around steady state in Solow
In my Advanced Macro script, the professor says take TSA1 of the following equation:
$(1+g)(1+n)k_{t+1} = sk^\alpha_{t+1} + (1-\delta)k_t$
where $g$ is technological progress, $n$ population growth, ...
- 41
0
votes
1
answer
2k
views
Taking the derivative of capital per effective unit of labor in the Solow model [closed]
I'm taking an intro macro course, and my calculus is pretty rusty. I'm going through some lectures notes right now where they derive the growth rate of capital in the Solow model like so:
I'm ...
- 103
5
votes
2
answers
2k
views
Steady state Solow model with exogenous technological change
Consider the following question:
So, assume the standard function for production:
$$Y_t = A_t K^\alpha_tL^{1-\alpha}$$
where $L$ is fixed.
Then, the growth rate of output is:
$$g_Y \approx g_A + ...
- 8,631
1
vote
2
answers
435
views
Solow model, time and steady state
Suppose we have a Solow model:
$$
Y(t)=C(t)+I(t)
$$
$$
I(t)=sY(t)
$$
$$
\dot K=I(t)-δK(t)
$$
With a given Cobb-Douglas:
$$
Y(t)=Z(t)K^aL^{1-a}
$$
$$
y(t)=Y(t)/L(t)
$$
$$
k(t)=K(t)/L(t)
$$
$$
y=...
- 51
1
vote
0
answers
34
views
Growth accounting: technological progress grows at near zero rate
In a growth accounting exercise I backed out the time path of technical progress augmenting a factor. Annual growth rate of this factor saving innovation is very close to zero in the last few years. ...
- 2,020
3
votes
1
answer
5k
views
Capital stock depreciation rate, how to calculate?
I am trying to work out the depreciation rate using the following information, it is an extract from a longer data set on capital stock:
Just wanted to find out what the rate of depreciation is for ...
- 2,020