Which is surely true in the Augmented Solow Model’s steady state?
If two theories both fit the same set of stylized facts, the…
If two theories both fit the same set of stylized facts, then those theories are observationally equivalent.
Labor’s share of GDP in the U.S.
Labor’s share of GDP in the U.S.
Dietz’s read of the evidence in Fully Grown is that increase…
Dietz’s read of the evidence in Fully Grown is that increased market power explains about half of the growth slowdown.
In the Solow model, faster productivity growth (e.g., higher…
In the Solow model, faster productivity growth (e.g., higher z) tends to raise the steady-state rental rate of capital.
Nation W has the same steady-state capital-output ratio as t…
Nation W has the same steady-state capital-output ratio as the modern United States. In Nation W, the savings rate is 15%, the annual depreciation rate is 1%, and productivity never grows (z=0%). What ‘s the annual population growth rate in Nation W?
In a Solow model with competitive markets, what is alpha (α)…
In a Solow model with competitive markets, what is alpha (α)?
If capital can move easily across countries in search of the…
If capital can move easily across countries in search of the highest rate of return, then a higher tax rate on capital tends to reduce equilibrium worker wages.
Consider a Baby Solow economy where TFP = 1, capital starts…
Consider a Baby Solow economy where TFP = 1, capital starts off at K0=1, the savings rate is 50%, and the annual depreciation rate of capital is 10%. What is the steady-state capital stock?
Dietz reports in Fully Grown that corporations appear to mov…
Dietz reports in Fully Grown that corporations appear to move their innovative activity from state to state partly in response to tax rates.