Term
|
Definition
| A model in which growth is caused by forces determined by the model. |
|
|
Term
|
Definition
| A model in which growth is not caused by forced determined by the model. |
|
|
Term
| Golden rule quantity of capital per worker. |
|
Definition
| The quantity of capital per worker that maximizes consumption per worker in the steady state. |
|
|
Term
|
Definition
| The savings rate that implies that consumption per worker is maximized in the steady state of a competitive equilibrium. |
|
|
Term
|
Definition
| Uses the production function and data on aggregate output, the capital input, and the labor input, to measure the contributions in growth of capital, the labor force, and total factor productivity to growth in aggregate output. |
|
|
Term
| Per-worker production function |
|
Definition
| In the Malthusian model, y=zf(l), where y is output per worker, z is total productivity factor, l is the quantity of land per worker, and f is a function. This describes the relationship between output per worker and land per worker, given constant returns to scale. In the Solow growth model, the per-worker production function is y=zf(k) where k is the quantity of capital per worker. The per-worker production function in this case describes the relationship between output per worker and capital per worker, given constant returns to scale. |
|
|
Term
|
Definition
|
|
