4 ms·
How is the growth rate determined? Since presumably it varies, is it averaged in some ways?
by norswap 8y ago
How is the growth rate determined? Since presumably it varies, is it averaged in some ways?
- imh 8y agoIf a big growth rate is a composition of a bunch of small changes with their own growth rate, then the overall change is the product of the individual ones, so geometric mean is appropriate.
- n4r9 8y agoI wrote a reply, but accidentally made it top-level: It's the expected growth rate, so yes it would vary in a real-world instance. I wondered for a while why they've taken the logarithm, but I think it's just because growth models are normally defined exponentially (with the rate being a parameter inside the exponential) - it shouldn't make a difference to the result. As for varying, that Samuelson article says: > For N as large as one likes, your growth rate can well (and at times must) turn out to be less than mine - and turn out so much less that my tastes for risk will force me to shun your mode of play.