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Effect on the steady state of an increase in h

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In a Solow-type economy, total national saving, SStt, is SStt = ssYYTT -hKKtt . The extra term, -hKKtt, reflects the idea that when wealth (as measured by the capital stock) is higher, saving is lower (wealthier people have less need to save for the future). Find the steady-state values of per-worker capital, per-worker output, and per-worker consumption. What is the effect on the steady state of an increase in h?

Reference no: EM131645548

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