Today in History for newspapers. Two-Strategies-for-Economic-Development-Using-Ideas-and-Producing-Ideas. Endogenous. IncreasingReturns. Cdp1001.pdf. Solow growth model. AbaCal - Powerful enterprise calculation platform. - abaCal - online formula calculator. Public Policy Sources #37: Appendix 1 The algebra of growth accounting. [Previous] [Contents] [Next] Recall that we start with the assumption that the production function for the economy takes the following Cobb-Douglas form: Y(t) = A(t)K(t)x L(t)1-x (A1) We also assume that 0 < x < 1. To perform growth accounting, we do the following. First, take the natural logarithm of both sides of the Cobb-Douglas production function to get the following expression: log(Y(t)) = log(A(t)) + log(K(t)x)+ log(L(t)1-x) (A2) Using the fact that log(Zb) = b(log(Z)), we can re-write (A2) as follows: log(Y(t)) = log(A(t)) + x(log(K(t))) + (1-x)(log(L(t))) (A3) If we lag this expression by one period (i.e. write it in terms of t-1 rather than t) we obtain the following: log(Y(t-1)) = log(A(t-1)) + x(log(K(t-1))) + (1-x)(log(L(t-1))) (A4) Subtracting equation (A4) from equation (A3) gives us: log(Y(t)) - log(Y(t-1)) = log(A(t)) - log(A(t-1)) + x(log(K(t))) - x(log(K(t-1))) + (A5) (1-x)(log(L(t))) - (1-x)(log(L(t-1))) D Y(t)/Y(t) = D A(t)/A(t) + x( D K(t)/K(t)) + (1-x)( D L(t)/L(t)) (A6)
KOENIG: his first Powered Printing Machines 1803-1818. The Printing Press as an Agent of Change - Elizabeth L. Eisenstein. Chapter_5.pdf. Public Policy Sources #37:Growth theory: the causes of economic growth. [ Previous ] [ Contents ] [ Next ] Understanding the sources of economic growth is important. Our central concern, however, is with the causes of economic growth and it is difficult to say much about that without a theory of growth. Hence, in this section I will briefly discuss developments in the theory of economic growth over the past few decades. In the subsequent section, I will discuss this theoretical work in the Canadian context, and review some of the more recent empirical studies.
I will attempt to keep the discussion as non-technical as possible. More technically minded readers are advised to read Barro and Sala-i-Martin 1995. Neoclassical growth models The productive capacity of the economy can be adequately characterized by a constant-returns-to-scale production function with diminishing returns to capital and labour.3 Firms are price-takers in a competitive market place. The implications of the neoclassical model of growth are straightforward. Endogenous growth models.