ECON0028 Growth Summary UCL

WEEKI




Syllabus




keyconcepts
regularlyover
reported




services




ofanavgperson

findingoutgeopoliticalpower




child life life working Co2
mortality expectancy satisfaction hours emissions




similarin
earlyperiods

, 10g growingg

g
declining
s t

GDPat t withgrowth
g


see




geforaunitchangeoftime Ye Ye i
Ye l
continuoustime instantaneous


e at day
Y at É
g Yy

y41
Takelogsandderivatives

g ily

LEVELS




RATES




Janie

, Generalframework

Productionfunction


y FKL I
Assumeconstantreturntoscale dimmargproductivity

F 2 K 2 L 2 F kill
replication Kil arrival
ZE Fu 0
II Fan co

wecan't makemoreperunit
if wet Kil
homogenousdegree1




concavefunction
4 diminishingreturns




clonggreggunction pivotfuprefiction perigetitifunction




CobbDouglas
Y = AK ® L1¡®
drivescapitalshare XE 0,11
ofincome elasticity
Y = (AK)® L1¡® Y = K ® (AL)1¡®




perworker
Aff
output
y Ak flu

diminishingreturn
mpk JE aah so


ig
factor
shares
I mp
a II MP
1 a

Y = AK ® L1¡®

, WEEK2


capital




orthodox




BasicSolowmodell
modelshowswhathappens
i
Assumecompetitivemarkets constant
population technology k isthekeyendogenousvariable
hwamp re mph 4 dep 4 inv

profuctionfungion capitalaccummulation
equation


CobbDouglasproductionfunction

EE 0,11
returntoscale
constant elasticity
a technology
dimmargproductivity alsodegreeofdiminishingreturns

Kae a


perworker
output diminishingreturns



y I A
IF Ak flu Mek
IE aan so


ÉÉ a a 1 un co

independentof r w
n nm
mPu K
II dally thy t
constant

Il Hak t
Meg y
M
g Y II