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Mankiw Chapter 8 Growth II
Mankiw Chapter 8 Growth II
Mankiw Chapter 8 Growth II
macroeconomics
fifth edition
N. Gregory Mankiw
PowerPoint Slides
by Ron Cronovich
sf(k)
k* Capital per
worker, k
CHAPTER 8 Economic Growth II slide 8
Steady-State Growth Rates in the
Solow Model with Tech. Progress
Steady-state
Variable Symbol
growth rate
Capital per
k = K/ (L E ) 0
effective worker
Output per
y = Y/ (L E ) 0
effective worker
To determine , divide 2 by 1:
k 0.1 y 0.1
k
2.5 y
0.04
2.5
Oil prices
Oil shocks occurred about when productivity
slowdown began.
But: Then why didnt productivity speed up
when oil prices fell in the mid-1980s?