北京外国语大学《宏观经济学》课件-第3章Growth and Accumulation.pptxVIP

Chapter 3 Growth and Accumulation1. Growth Rate Calculation2. Solow Model3. Growth accounting北京外国语大学《宏观经济学》 Expression for growth rateDiscreteConsecutive Take logs, then differentiateTake logs on both sidesDifferentiate on time t ExercisesAssume that z(t) = x(t)/y(t) (1) Find out the growth rate of z(t).(2) If z(t) is constant, prove that the growth rate of x(t) and y(t) are the same. Expression for average growth rateDiscreteConsecutiveEquivalence Chapter 3 Growth and Accumulation1. Growth Rate Calculation2. Solow Model3. Growth accounting ReferencesSolow, Robert M. 1956. “A contribution to the theory of Economic Growth.” Quarterly Journal of Economics 70 (February): 65-94Solow, Robert M. 1957. “Technical Change and the Aggregate Production Function.” Review of Economics and Statistics 39 (August): 312-320 Economic growth modelEconomic growthDefinitionEconomic growth modelThe core issue Solow Model: Assumption (1)Two factors: Capital and LaborProduction function is Solow Model: Assumption (2)Two sector EconomyConsumption share is a constant（1-s）In equilibrium Solow Model: Assumption (3)Competitive market Solow Model: per capita OutputConstant-return-to-scale production function Per capita production function Diminishing marginal product of capital : Output rises less at high levels of capital than at low levels Solow Model: Steady StatePer capita economic variables are no longer changing, i.e., The core equation of Solow ModelHow to deduce, given labor’s growth rate n ? C-D TechnologyC-D Production function is Steady State: C-D Technology Steady State: Summaryk* and thus y*=f(k*) are determined by s, n and d.y* is constant given s, n and d. no growth in the long runWhen y0y*, it will increase to y*. growth in the short runGrowth rate of Y*=Ny* is n. An increase in s An increase in sk* and thus y*=f(k*) increase.Growth rate of Y*=Ny* remains n. Adjustment to new steady state A decrease in nWhen China carried out “one-child policy”, the growth rate of popul