Physical capital - The Solow model
5 important questions on Physical capital - The Solow model
In the Solow model, where does the action come from?
The change in the capital stock
I: quantity of investment
D: quantity of depreciation
The equation for the evolution of capital per worker
gamma = fraction of output that is invested
delta = fraction of the capital stock that depreciates each period
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Describe the steady-state capital stock
Explain the term convergence toward the steady state
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