First, consider the consumers in the economy. We'll add some dynamics here, as we analyze the economy in terms of the current and future periods.Assume capital is the same as the final good of the economy, but used in the production process of more goods. The accumulation of the capital stock in the Solow model is given by: K. sY. In the Solow model, per-capita income depends on the capital stock. Solow sets up a mathematical model of long-run economic growth. He assumes full employment of capital and labor. For a difference in the stock of physical capital per man. 1. Output and capital per worker grow at the same constant, positive rate in BGP of model. In long run model reaches BGP.

Capital Stock In Solow Model In Harris

Description

Related forms

Show more info

Form Rating

Form popularity

More info

Trusted and secure by over 3 million people of the world’s leading companies