{"id":523,"date":"2014-07-04T13:12:13","date_gmt":"2014-07-04T13:12:13","guid":{"rendered":"http:\/\/zh.aceessays.com\/tc\/?p=523"},"modified":"2015-01-18T20:41:10","modified_gmt":"2015-01-18T20:41:10","slug":"what-if-labour-force-grows","status":"publish","type":"post","link":"https:\/\/www.aceessays.com\/tc\/what-if-labour-force-grows\/","title":{"rendered":"What if labour force grows?"},"content":{"rendered":"<h3>What if labour force grows?<\/h3>\n<p>Accumulation eqn now<\/p>\n<h3>Analysis in growth rates<\/h3>\n<p>Can illustrate above with graph of gk and k<\/p>\n<h3>Rise in savings rate (s0 to s1)<\/h3>\n<h3>Solow\u2019s surprise*<\/h3>\n<ul>\n<li>Solow\u2019s model states that investment in capital cannot drive long run growth in GDP per worker<\/li>\n<li>Need technological change (growth in A) to avoid diminishing returns to capital<\/li>\n<li>Easterly (2001) argues that \u201ccapital fundamentalism\u201d view widely held in World Bank\/IMF from 60s to 90s, despite lessons of Solow model<\/li>\n<li>Policy lesson: don\u2019t advise poor countries to invest without due regard for technology and incentives<\/li>\n<\/ul>\n<h3>Golden rule<\/h3>\n<ul>\n<li>The \u2018golden rule\u2019 is the \u2018optimal\u2019 saving rate (sG) that maximises consumption per head.<\/li>\n<li>Assume A is constant, but population growth is n.<\/li>\n<li>Can show that this occurs where the marginal product of capital equals (d + n)<\/li>\n<\/ul>\n<h3>Graphically find the maximal distance between two lines<\/h3>\n<h3>\u2026 over saving<\/h3>\n<h3>Role of Savings empirical 1<\/h3>\n<ul>\n<li>What we said so far is that the more a country saves, the more it invests; the more it invests, the higher its capital-output ratio; the higher its capital-output ratio, the higher its output-labour ratio.<\/li>\n<li>Output-labour ratio is p.c. Income, hence countries with high savings and investment should show high p.c. Income. Is this true?<\/li>\n<\/ul>\n<p>&nbsp;<\/p>\n<p>Essay writing tips: <a href=\"http:\/\/www.aceessays.com\/tc\/\">\u8ad6\u6587\u4ee3\u5beb<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>What if labour force grows? Accumulation eqn now Analysis in growth rates Can illustrate above with graph of gk and k Rise in savings rate (s0 to s1) Solow\u2019s surprise* Solow\u2019s model states that investment in capital cannot drive long run growth in GDP per worker Need technological change (growth in A) to avoid diminishing returns to capital Easterly (2001) argues that \u201ccapital fundamentalism\u201d view widely held in World Bank\/IMF from 60s to 90s, despite lessons of Solow model Policy lesson: don\u2019t advise poor countries to invest without due regard for technology and incentives Golden rule The \u2018golden rule\u2019 is the \u2018optimal\u2019 saving rate (sG) that maximises consumption per head. Assume A is constant, but population growth is n. Can show that this occurs where the marginal product of capital equals (d + n) Graphically find the maximal distance between two lines \u2026 over saving Role of Savings empirical 1<\/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-523","post","type-post","status-publish","format-standard","hentry","category-notes"],"_links":{"self":[{"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/posts\/523","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=523"}],"version-history":[{"count":1,"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/posts\/523\/revisions"}],"predecessor-version":[{"id":1537,"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/posts\/523\/revisions\/1537"}],"wp:attachment":[{"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/media?parent=523"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/categories?post=523"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.aceessays.com\/tc\/wp-json\/wp\/v2\/tags?post=523"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}