Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

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.

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Econometric Analysis

Authors: William H. Greene

5th Edition

130661899, 978-0130661890

More Books

Students also viewed these Economics questions

Question

Does the hostile work environment apply here? Why or why not?

Answered: 1 week ago