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Why is the Solow model classified as exogenous?
Why is increasing the savings rate above alpha bad?
What does the Solow model predict will happen in the LR if if the only difference is current capital per capita?
If every country is currently in their steady state, how does the model account for differences in output per capital levels?
If technology is common to all, how does the model account for differences in growth rates of output per capita?
Kaldor's Stylized Facts #1
Kaldor's Stylized Facts #2
Kaldor's Stylized Facts #3
Growth Facts #1
Growth Facts #2
Growth Facts #3
Growth Facts #4
Growth Facts #5
Growth Facts #6
Growth Facts #7
Closed economy
Consumers assumptions
Parameters
Exogenous
Endogenous
Solve the model:
Firms max profit
What explains the differences in GDP levels across countries?
What explains the differences in GDP per capita growth rates across countries?
Absolute convergence
Conditional convergence