中级宏观经济学 课件 第7、8章-1.pptVIP

* Before showing the next slide, ask your students which of the two views is closest to their own. * * (Part of) Table 8-2 on p.217. Figures for Germany prior to 1995 are for W. Germany * * * Check out the second paragraph on p.220: It gives a nice contrast of the Solow model and Marxist predictions for the behavior of factor prices, comparing both predictions with the data. * * * * * * Why the growth rates of Y and K are equal: Y = AK, so the growth rate of Y equals the sum of the growth rates of A and K. A is constant, so its growth rate is zero. Hence, output and capital grow at the same rate. Discussion: The return to capital is the incentive to invest. If capital exhibits diminishing returns, then investment cannot be a source of sustained growth. If, as in this model, MPK does not fall, then the incentive to invest more than depreciation is constant, and investment becomes an engine of growth. The $64,000 question: Does capital exhibit diminishing or constant marginal returns? The answer is critical, for it determines whether investment explains sustained (i.e. steady-state) growth in productivity and living standards. See the next slide for discussion. * * Before presenting this model, it might be helpful to tell students that it is an extension of something they already know - the Solow model with tech progress. There are two differences: First, a fraction of the labor force does not produce goods services, but rather produces “knowledge” by doing research in universities. Second, the rate of tech progress is not exogenous, but rather depends on how fast the stock of knowledge grows, which in turn depends on how much labor the economy has allocated to research. In fact, if you have a few minutes of class time after presenting the model, you should consider having your students work problem #5 on p.228. Otherwise, assign it as a homework exercise. In regards to the specific elements of the model, Mfg prod func: Just like in t