Lecture 09
Lecture 09
The Sources of
Growth and the
Solow Model
Economic Growth Around the
World
yt ct syt
sAkt0.3 kt
Investment = Depreciation
Sources: Penn World Tables in Federal Reserve Bank of St. Louis, FRED Database. http://research.stlouisfed.org/fred2/; and
The World Bank. World Development Indicators. http://data.worldbank.org/data-catalog
Yt
At 0.3 0.7
Kt Lt
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Application: U.S. Growth Rates in the
Postwar Period