{"id":521,"date":"2014-07-03T16:12:13","date_gmt":"2014-07-03T16:12:13","guid":{"rendered":"http:\/\/zh.aceessays.com\/tc\/?p=521"},"modified":"2015-01-18T20:41:09","modified_gmt":"2015-01-18T20:41:09","slug":"neoclassical-growth-model","status":"publish","type":"post","link":"https:\/\/www.aceessays.com\/tc\/neoclassical-growth-model\/","title":{"rendered":"Neoclassical growth model"},"content":{"rendered":"<h3>Neoclassical growth model<\/h3>\n<ul>\n<li>Model growth of GDP per worker via capital accumulation<\/li>\n<li>Key elements:<\/li>\n<li>Production function (GDP depends on technology, labour and physical capital)<\/li>\n<li>Capital accumulation equation (change in net capital stock equals gross investment [=savings] less depreciation).<\/li>\n<li>Solow-Swan assume:<\/li>\n<li>diminishing returns to capital or labour (the \u2018law\u2019 of diminishing returns), and<\/li>\n<li>constant returns to scale (e.g. doubling K and L, doubles Y).<\/li>\n<li>For example, the Cobb-Douglas production function<\/li>\n<li>Questions:<\/li>\n<\/ul>\n<blockquote>\n<ul>\n<li>how does capital accumulation (net investment) affect growth?<\/li>\n<li>what is role of savings, depreciation and population growth?<\/li>\n<li>what is role of technology?<\/li>\n<\/ul>\n<\/blockquote>\n<h3>GDP per worker and k<\/h3>\n<p>Assume A and L constant (no technology growth or labour force growth)<\/p>\n<h3>Graphical analysis of<\/h3>\n<h3>Solow-Swan equilibrium<\/h3>\n<h3>What happens if savings increased?<\/h3>\n<ul>\n<li>raising saving increases k* and y*, but long run growth still zero (e.g. s1&gt;s0 below)<\/li>\n<li>call this a \u201clevels effect\u201d<\/li>\n<li>growth increases in short run (as economy moves to new steady state), but no permanent \u2018growth effect\u2019.<\/li>\n<\/ul>\n<p>Writing assist: <a href=\"http:\/\/www.aceessays.com\/tc\/\">\u8ad6\u6587\u4ee3\u5beb<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Neoclassical growth model Model growth of GDP per worker via capital accumulation Key elements: Production function (GDP depends on technology, labour and physical capital) Capital accumulation equation (change in net capital stock equals gross investment [=savings] less depreciation). Solow-Swan assume: diminishing returns to capital or labour (the \u2018law\u2019 of diminishing returns), and constant returns to scale (e.g. doubling K and L, doubles Y). For example, the Cobb-Douglas production function Questions: how does capital accumulation (net investment) affect growth? what is role of savings, depreciation and population growth? what is role of technology? GDP per worker and k Assume A and L constant (no technology growth or labour force growth) Graphical analysis of Solow-Swan equilibrium What happens if savings increased? raising saving increases k* and y*, but long run growth still zero (e.g. s1&gt;s0 below) call this a \u201clevels effect\u201d growth increases in short run (as economy moves to new steady<\/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-521","post","type-post","status-publish","format-standard","hentry","category-notes"],"_links":{"self":[{"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/posts\/521","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=521"}],"version-history":[{"count":1,"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/posts\/521\/revisions"}],"predecessor-version":[{"id":1536,"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/posts\/521\/revisions\/1536"}],"wp:attachment":[{"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/media?parent=521"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/categories?post=521"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/tags?post=521"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}