3. Assume that the decrease in the growth rate of the labour force comes gradually, so the...

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3. Assume that the decrease in the growth rate of the labour force comes gradually, so the change from 0.0 15 to 0.005 takes place over the 120 years following period 10 with an equal relative change each year. Simulate the model over 200 years and illustrate in the same type of diagram, again starting from the old steady state in period 0- 1 0. Comment again with respect to your simulations being able to 'explain' empirical observations on population growth rates and economic growth rates, as those reported in Table 8.1.

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Introducing Advanced Macroeconomics: Growth And Business Cycles

ISBN: 9783031200922

1st Edition

Authors: Peter Birch Sørensen, Hans Jørgen Whitta-Jacobsen

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