Characteristics of endogenous growth theory, Macroeconomics

Assignment Help:

Q. Characteristics of endogenous growth theory?

There are many different explanations for technological progress. Most of them, though, have many common characteristics:

They are based on constant return to scale for capital. So MP_K isn't a decreasing function of K in these models.
They consider technological development as a public good.
They focus more on human capital.
It is possible for government to affect the growth rate. Higher savings also results in higher growth, not just higher GDP per capita.
They predict convergence of GDP per capita between countries in the long run. This is a consequence of public good property of the technological developments.

Related Discussions:- Characteristics of endogenous growth theory

Initial equilibrium position, Determine on any market the effect of the fol...

Determine on any market the effect of the following. Do each separately (on a separate graph) starting from an initial equilibrium position for each one. 1. increase in income

What causes a supply curve to shift, What causes a supply curve to shift? ...

What causes a supply curve to shift? a. Changes into Input Prices An input is a good which is used to generate another good. b. Changes into Technology c. Chang

Difference between opportunity and accounting cost, Provide an explanation ...

Provide an explanation of difference between opportunity and accounting cost, and accounting and economic profits. Then, please provide an example from your experience where opport

INTERNATION TRADE, ABSOLUTE ADVANTANGE \

ABSOLUTE ADVANTANGE \

Production possibilities curve, Using a production possibilities curve, an ...

Using a production possibilities curve, an economy that produces an output combination less than the maximum possible is depicted by a point located. a. at the top corner of the

Analyse the assumptions of price elasticity, In an article about the financ...

In an article about the financial problems of USAToday,News week reported that the paper was losing about $20 million a year. A Wall Street analyst said that the paper should raise

#title. phillip curve, what does phillip curve signify? how do you reconcil...

what does phillip curve signify? how do you reconcile the difference in the shap of the curve in the short run and the long run?

Annual increase in replacement cost, You have acquired a CT scanner at a co...

You have acquired a CT scanner at a cost of $750,000. You expect to perform 7,000 procedures per year over the estimated 5-year life of the scanner. Assuming no salvage value and a

Inflation unemployment trade off under adaptive expectations, Explain how i...

Explain how inflation unemployment trade off is not feasible under adaptive expectations?

Intermediate macroeconomics, An economy's IS and LM curves are given by the...

An economy's IS and LM curves are given by the following equations: with Y indicating output (income), c indicating the marginal propensity to consume, I investment, G gove

Write Your Message!

Name

Email id

Message

Verfication Code

User Account

All Pages