Oct 02, 2017 term paper 2

EXPLAIN HOW IN THE (SOLOW) EXOGENOUS GROWTH MODEL, OUTPUT AND CONSUMPTION PER WORKER CONVERGE IN…

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Explain how in the (Solow) exogenous growth model, output and consumption per worker converge in the long run to steady-state levels. Show that output per worker increases in the long run when the savings rate increases or when the population growth rate decreases. Check if these two predictions are consistent with the data.


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