Economics Stack Exchange
Economics Stack Exchange

Questions tagged [economic-growth]

An increase over time in the quantity of goods and services produced within an economy.

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Are there fundamental reasons why (exponential) economic growth is highly desirable?

One of the most widely published measures of the economy is the economic growth as a % of the GDP; i.e. the degree to which an economy grows exponentially. In my understanding, when the rate of economic growth is declining or close to 0%, this is…
gerrit
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Why is economic growth measured exponentially rather than linearly?

If economic growth is indeed highly desirable (see this question), why must this growth be exponential? With finite resources, exponential growth might hit limits rapidly (or be impossible?). Why not express growth in linear rather than exponential…
gerrit
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Is indefinite exponential economic growth possible?

Economic growth is frequently expressed as a % of GDP. Proponents of a steady-state economy postulate that perpetual exponential economic growth is impossible and that any system relying on it is inherently unstable. Is this true? Is indefinite…
gerrit
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Inada Conditions for Intensive Form of Production Function

I want to show that the Inada conditions $\underset{K\rightarrow0}{\lim} \frac{\partial F}{\partial K}=\underset{L\rightarrow0}{\lim} \frac{\partial F}{\partial L}=\infty$ and $\underset{K\rightarrow\infty}{\lim} \frac{\partial F}{\partial…
kékszajkók
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The Next Breakthrough of Growth Economics

Romer has once said, that the growth economics has not had a breakthrough after his work of endogenous model of 1990's. What could somehow prove his saying is that we rarely see the theoretical invention in growth economics area in the recent years…
exteral
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Can a Discount Rate be Inferred within a Solow-Swan Growth Model?

I'm trying to understand the implications of a Solow-Swan growth model with, to keep things simple, constant population, and constant Cobb-Douglas technology written in per capita form as $y=k^{\alpha} (0<\alpha<1)$. Given an initial capital stock,…
Adam Bailey
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Does everyone prosper through development projects?

Why don't all investors focus their intentions on development projects in less developed countries? Wouldn't this benefit all parties since the recipient country would be more developed and the investor would make a profit? In other words can it be…
James John
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Updating MRW (1992) with PWT 9.0

I'm trying to rework Mankiw, Romer, Weil (1992) with fresh data. From their paper: n: workforce growth rate We measure n as the average rate of growth of the working-age population, where working age is defined as 15 to 64. s: rate of savings We…
inquirius
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What Is the Economic Meaning of "Structural Reforms"

I see tweets like this a lot: Poor 2q growth shows its not just a "1q curse". Cannot ever cause eco recovery thru just #QE, low interest rates. #StructuralReforms They seem to be saying essentially that structure should be the focus, not interest…
user541852587
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Bernoulli transformation in " A Close Form Solution to the Ramsey model" by Smith (2006)

I am trying to understand the way Smith arrived from (1) and (2) to (6) and (8). Could anyone give me a hint? Thank you! It is well known that the dynamics per capita consumption $c$ and capital $k$ are determined by the following pair of…
OST_EE
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Global stability in a ramsey growth model with multiple equilibria

Let's say that we have a model with multiple equilibria. $c$ refers to consumption and $S$ refers to natural capital stock. The dynamics that describe the economy are as…
optimal control
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I can't find (lny-lny0)/t meaning

I cannot understand what (lny-lny0)/t means. Of course we use this to show growth rate. But in the mathematical sense, I cannot know what it is. Is it diferrentiaion?
user19506
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In 21st century and a globalized world, is economic growth still the metric by which to measure a state's success?

Economic growth as a yardstick for a government's success is relatively new on a human historical scale. In my thinking it has arisen out of an expansion of the expected function of a state. States at a minimum are expected to uphold the rule of law…
Kaleb
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Expanding product variety - Grossman & Helpman 1991

Consider the expanding product variety model of Grossman & Helpman (1991), given an equilibrium price for the intermediate sector equal to $w/\alpha$, how do the authors get the following result for the brand operating profits? $\pi =…
Maximilian
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Calculating population growth in logs

I want to approximate annual population growth using logarithms; that is, log(population at year 2) - log(population at year 1). Is it okay to use population in thousands, or in millions in these approximations? For example, Maddison Project and PWT…
Ornithogalum
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