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Growth rates\text{Growth rates}
Lλ/A1−ϕ\text{$L^{\lambda}/A^{1-\phi}$}
(Lλ/A1−ϕ)ss(L^{\lambda}/A^{1-\phi})_{ss}
Initial Lλ/A1−ϕ\text{Initial } L^{\lambda}/A^{1-\phi}
gAg_A
gA=θsRλLλA1−ϕg_A= \theta s_R^{\lambda} \frac{L^{\lambda}}{A^{1-\phi}}
λ1−ϕgL\frac{\lambda}{1-\phi}g_L
PARAMETERS
Adjust parameter(s) to see effect on growth rate and level of GDP per capita. You can adjust multiple parameters. Reload the page to reset.
gL=g_L =
λ=\lambda =
ϕ=\phi =
θ=\theta =
sR=s_R =
INITIAL CONDITIONS
You can adjust the initial L/A ratio using the dot on the x-axis or this control. The exponents (lambda,phi) don't display well here, but you're adjusting the right thing.
L/A=L / A =
CALCULATIONS
Given the initial conditions and parameters we can calculate these...
Initial gA=θsRλLλ/A1−ϕ=0.0135\text{Initial } g_A = \theta s_R^{\lambda} L^{\lambda}/A^{1-\phi} = 0.0135
Steady state gA=λgL/(1−ϕ)=0.0090\text{Steady state } g_A = \lambda g_L / (1-\phi) = 0.0090