3 ms·
GDP ~= Capital * Productivity * Labor Population You’re missing an critical component from the Solow model. https://economics.mit.edu/files/7181 https://econo
by snake_doc 4y ago
GDP ~= Capital * Productivity * Labor Population
You’re missing an critical component from the Solow model.
https://economics.mit.edu/files/7181 https://economics.mit.edu/files/7181
- mensetmanusman 4y agoI wrapped capital up in productivity since machines/software/tools are a facet of how the labor population manifests productive use of time (and to simplify the discussion:) )
- snake_doc 4y agoThe interaction between capital and savings from an aging population is critical, as it delays the impact of population decline on output growth. Japan is an excellent case of when labor population has declined/stagnated since 1990s.