Lazarov, Darko and Fotov, Risto and Josheski, Dushko (2011) Емпириска анализа на Solow-Swan моделот на раст. Годишен Зборник 2011. ISSN 1857-76-28
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Abstract
Long-term rate of economic growth in the Solow-Swan model is determined by exogenous (previously given) variables, and as a result, in the model, per capita variables k, c and y grow only to a point where the economy reaches the steady-state level. From this we can conclude that the Solow-Swan model provides an opportunity to grow the economy, but in the long run. To explain this fact we will use one example. Suppose that the economy is in a state where capital per worker k is below the value in the steady-state condition, in which case capital and output per worker will grow, but only along the transition path to steady-state. On the other hand, when the goods on physical capital per worker exceeds the value of capital per worker in steady-state condition, then the economy has seen a decline in capital and output per worker along the transition path to steady-state level.
| Item Type: | Article |
|---|---|
| Subjects: | Social Sciences > Economics and business |
| Divisions: | Faculty of Economics |
| Depositing User: | Darko Lazarov |
| Date Deposited: | 25 Jun 2014 11:40 |
| Last Modified: | 21 Oct 2014 13:42 |
| URI: | https://eprints.ugd.edu.mk/id/eprint/10186 |
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