Solow Flashcards

1
Q

På vilket sätt skiljer sig Solow från Prod?

A

Tar hänsyn till ackumulerat kapital och är dynamisk

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2
Q

Sätt upp modellen

A
End: 5
Prod:
Capital acc:
Labor force:
Resource con:
Allocation of resources:
Para/ex: 5
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3
Q

Lös modellen

A
  1. deltaKt+1=sbarYt-dbarKt
  2. Yt=AbarKt^1/3Lbar^2/3
  3. Graph
  4. Lös för ss
    - inv = dep -> sbarY=dbarK
    - sbarAbarK^1/3Lbar^2/3=dbarK
    K=(sbarAbar/dbar)^3/2Lbar
    Y
    =Abar^3/2(sbar/dbar)^1/2Lbar
    y*=Abar^3/2(sbar/dbar)^1/2
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4
Q

Hur mycket bör vi spara?

A
  • Välfärd beror på konsumtion -> vilken investeringskvot maximerar C*?
  • Gyllene regeln: den investeringskvot som maximerar C* -> MPK=dbar
  • C=Y-I* -> max F(K, Lbar) - dbarK = MPK - d = 0 -> MPK = dbar

Prodfunc: Yt=AbarKt^1/3Lbar^2/3
I ss: sbarY=dbarK -> sbarAbarK^1/3-1Lbar^2/3=dbar
Gyllene regeln: MPK=dbar -> 1/3AbarK
^1/3-1Lbar^2/3=dbar
-> sbar=1/3 (dvs kapitalets andel i produktionen)

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5
Q

Sammanfattning

A

Är investeringar i kapital en mirakelkur?

  • Nej enligt Solow
  • Långsiktig levnadsstandard beror positivt på investeringskvoten men inte långsiktig tillväxt

En permanent ökning leder till:

  • högre inkomster och konsumtion på lång sikt
  • högre tillväxt på kort sikt
  • lägre konsumtion på kort sikt
  • ingen skillnad i tillväxt på lång sikt

y* = Abar^3/2(sbar/dbar)^1/2

-> Skillnader i TFP förklarar ca 99% och skillnader i investeringskvot ca 1% av skillnader i GDP/capita

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6
Q

Why does the economy settle down to a steady state?

A

Because the sY curve exhibits diminishing returns. As the capital stock increases, production rises and therefore investment rises. But the amount by which production and investment rise gets smaller as the capital stock grows.

The fact that production exhibits diminishing returns to capital accumulation means that each addition to the capital stock increases production and investments by less and less. Since depreciation is constant, eventually the amount of investment the economy generates is equal to depreciation. Hence, net investment is zero and the economy stabilizes in ss.

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7
Q

Graph over Y=F(K,L) och possible ss.

A

K* ligger där MPK=dbar. Där är C* maximerad. Behärska uppritande av graf!

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