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Standard growth models have assumed a non-zero balanced growth of the economy based on constant rate of technological progress, with g=y hat/y=A hat/A , where
Standard growth models have assumed a non-zero balanced growth of the economy based on constant rate of technological progress, with g=y hat/y=A hat/A , where y denotes per capita income (GDP) and A denotes "ideas" (technological progress). a. What historical evidence (macro and micro) has been commonly used to justify this assumption? Please be specific.
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