长期经济增长2.ppt

Lecture 4：长期经济增长2 SOLOW MODEL 生产函数 Y = A F(L, K, H, N) Y = quantity of output A = available production technology L = quantity of labor K = quantity of physical capital H = quantity of human capital N = quantity of natural resources F( ) is a function that shows how the inputs are combined. Production functions with constant returns to scale have an interesting implication. Setting x = 1/L, Y/ L = A F(1, K/ L, H/ L, N/ L) Where: Y/L = output per worker K/L = physical capital per worker H/L = human capital per worker N/L = natural resources per worker The preceding equation says that productivity (Y/L) depends on physical capital per worker (K/L), human capital per worker (H/L), and natural resources per worker (N/L), as well as the state of technology, (A). Government Policies That Raise Productivity and Living Standards Encourage saving and investment. Encourage investment from abroad Encourage education and training. Establish secure property rights and maintain political stability. Promote free trade. Promote research and development The production function The national income identity Y = C + I (remember, no G ) In “per worker” terms:  y = c + i where c = C/L and i = I /L The consumption function s = the saving rate,  the fraction of income that is saved (s is an exogenous parameter) Note: s is the only lowercase variable that is not equal to its uppercase version divided by L Consumption function: c = (1–s)y  (per worker) Saving and investment saving (per worker) = y – c = y – (1–s)y = sy National income identity is y = c + i Rearrange to get: i = y – c = sy (investment = saving, like in chap. 3!) Using the results above,  i = sy = sf(k) Output, consumption, and investment Depreciation Capital accumulation The basic idea: Investment increases the capital stock, depreciation reduces it. The equation of motion for k The Solow model’s central equation Determines behavior of c