新古典主义模型.pdfVIP

Assumptions • Law of diminishing returns • Endogeneity of capital-output ratio Solow Model • Start from a production model: Y=f (K, L) • The capital equation suggests that per capita capital in the current period depends on depreciation, per capita capital and savings in the previous period. Relationship between k and y y Production Function k Conclusion • There is no long-term growth