Suppose that the TFP parameter, As, in the Solow production function is the same across countries. What differs across countries is their savings rate, s. For the 1750 starter its savings rate is .25. Find the savings rate for a country that switches to Solow in 1950. Use the calibrated parameters from class. Also, assume the same population growth function holds in the 1750 starter and the 1950 starter.

Suppose that the TFP parameter, As, in the Solow production function is the same across countries. What differs across countries is their savings rate, s. For the 1750 starter its savings rate is .25. Find the savings rate for a country that switches to Solow in 1950. Use the calibrated parameters from class. Also, assume the same population growth function holds in the 1750 starter and the 1950 starter.

Exploring Economics

8th Edition

ISBN:9781544336329

Author:Robert L. Sexton

Publisher:Robert L. Sexton

Chapter20: Economic Growth In The Global Economy

Section: Chapter Questions

Problem 4P

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