MGEB06H3 Chapter Notes - Chapter 7: Golden Rule, Production Function, Michael Kremer
14 Dec 2016
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A : technological k : savings ork capital. = he output per worker tether th mattifier. Y k= output per worker capital per worker production function : f ( k ) y= * k , 1) slope of this function : Mpk= f # 1) f ( k ) how much extra output a worker produces when h unit of capital diminishing marginal product of capital becomes flatter as k "t. Demand for goods in solow is from c { Icd worker : per cti y ft statements. Growth in the capital stock 4 the steady. Depreciation : the wear out of old capital. fi#ini*iniiy k the impact of investment 4 depreciation on k. S = depreciation rate ok= sflk ) - sk ok is the changefrom lyrto next. The rate by savings highest consumption rate set. =k* howtofindk*g= in y= ctv c= i y spy =f(k* To etgdd ofthe slump . tradeoff between i.
