Growth, fluctuations and innovation - Growth concepts and useful tools

4 important questions on Growth, fluctuations and innovation - Growth concepts and useful tools

How is the annual growth rate in discrete time calculated?

Deltay/y

Describe the log difference method for computing annual growth rates

Log(yt + 1) - log (y)

What is the compound annual growth rate?

It provides the trend rate of growth over multiple periods. The formula is (yt/y0)^(1/t) - 1.
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Describe the exponential method of calculating compound growth rates

Yt = y0*exp(gyt)
gy= log(yt/y0)/t

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