{"id":513,"date":"2014-06-29T16:12:13","date_gmt":"2014-06-29T16:12:13","guid":{"rendered":"http:\/\/zh.aceessays.com\/tc\/?p=513"},"modified":"2016-11-08T15:50:10","modified_gmt":"2016-11-08T15:50:10","slug":"development-accounting","status":"publish","type":"post","link":"https:\/\/www.aceessays.com\/tc\/development-accounting\/","title":{"rendered":"Development Accounting"},"content":{"rendered":"<h3>Development Accounting<\/h3>\n<ul>\n<li>The table above tell us that.<\/li>\n<li>First, there are surprisingly large difference in the level of productivity, among countries.<\/li>\n<li>Capture interesting variation in countries relative strengths and weaknesses.<\/li>\n<li>If there is a deficiency with these productivity measures?<\/li>\n<\/ul>\n<h3>Beyond the Solow Model: Endogenous Growth Theory<\/h3>\n<p>The Endogenous Growth Theory rejects<br \/>\nSolow\u2019s basic assumption of exogenous technological change<\/p>\n<h3>The Basic Model<\/h3>\n<p>Start with a simple production function: Y = AK, where Y is output,<br \/>\nK is the capital stock, and A is a constant measuring the amount of<br \/>\noutput produced for each unit of capital (noticing this production<br \/>\nfunction does not have diminishing returns to capital).<br \/>\nOne extra unit of capital produces A extra units of output regardless of how much capital there is. This absence of diminishing returns to capital is the key difference between this endogenous growth model and the Solow model.<br \/>\nLet\u2019s describe capital accumulation with an equation similar to those<br \/>\nwe\u2019ve been using: DK = sY &#8211; dK. This equation states that the change<br \/>\nin the capital stock (DK) equals investment (sY) minus depreciation<br \/>\n(dK). We combine this equation with the production function, do<br \/>\nsome rearranging, and we get: DY\/Y = DK\/K = sA &#8211; d<\/p>\n<p>This equation shows what determines the growth rate of output DY\/Y.<br \/>\nNotice that as long as sA &gt; d, the economy\u2019s income grows forever,<br \/>\neven without the assumption of exogenous technological progress.<\/p>\n<p>In the Solow model, saving leads to growth temporarily, but diminishing<br \/>\nreturns to capital eventually force the economy to approach a steady<br \/>\nstate in which growth depends only on exogenous technological progress.<\/p>\n<p>By contrast, in this endogenous growth model, saving and investment can<br \/>\nlead to persistent growth.<br \/>\nEssay Writing topics: <a href=\"http:\/\/www.aceessays.com\/tc\/\">\u8ad6\u6587\u4ee3\u5beb<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Development Accounting The table above tell us that. First, there are surprisingly large difference in the level of productivity, among countries. Capture interesting variation in countries relative strengths and weaknesses. If there is a deficiency with these productivity measures? Beyond the Solow Model: Endogenous Growth Theory The Endogenous Growth Theory rejects Solow\u2019s basic assumption of exogenous technological change The Basic Model Start with a simple production function: Y = AK, where Y is output, K is the capital stock, and A is a constant measuring the amount of output produced for each unit of capital (noticing this production function does not have diminishing returns to capital). One extra unit of capital produces A extra units of output regardless of how much capital there is. This absence of diminishing returns to capital is the key difference between this endogenous growth model and the Solow model. Let\u2019s describe capital accumulation with an<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[22],"tags":[],"class_list":["post-513","post","type-post","status-publish","format-standard","hentry","category-notes"],"_links":{"self":[{"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/posts\/513","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/comments?post=513"}],"version-history":[{"count":1,"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/posts\/513\/revisions"}],"predecessor-version":[{"id":1532,"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/posts\/513\/revisions\/1532"}],"wp:attachment":[{"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/media?parent=513"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/categories?post=513"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/tags?post=513"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}