Economic Growth IIThe Solow Model and Beyond.ppt

the Solow model and beyond The last lecture introduced the Solow model without technical progress, in which growth of output per worker falls to zero eventually, although total output grows at the rate of population growth in the long-run. This lecture extends the Solow model to include exogenous technical progress. It also considers two further simple models – the augmented Solow model with human capital and the AK model of broad capital. technological progress Exogenous vs endogenous; disembodied vs embodied; neutral vs factor biassed. Technical progress is Hicks-neutral if the ratio of MPK/