Labor’s share of GDP in the U.S.

In the Solow model, faster productivity growth (e.g., higher z) tends to raise the steady-state rental rate of capital. 

Dietz’s read of the evidence in Fully Grown is that increased market power explains about half of the growth slowdown. 

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)?

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 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 move their innovative activity from state to state partly in response to tax rates.

In an economy with a simple Cobb-Douglas production function and competitive markets, the worker’s equilibrium share of output is (1-s), 1 minus the nation’s savings rate. 

Across countries today, nations with higher population tend to have higher levels of GDP per person.