0.0
0.5
1.0
1.5
2.0
2.5
3.0
0
5
10
15
20
Log GDP per capita
\text{Log GDP per capita}
Log GDP per capita
Time (t)
\text{Time (t)}
Time (t)
BGP
\text{BGP}
BGP
PARAMETERS
Adjust these to see how the level of the BGP changes.
g
L
=
g_L =
g
L
=
g
A
=
g_A =
g
A
=
s
K
=
s_K =
s
K
=
δ
=
\delta =
δ
=
α
=
\alpha =
α
=
A
0
=
A_0 =
A
0
=
CALCULATIONS
Given the parameters we can calculate these...
ln
y
B
G
P
=
α
1
−
α
ln
(
s
K
g
A
+
g
L
+
δ
)
+
ln
(
A
0
)
+
g
A
t
\ln y_{BGP}= \frac{\alpha}{1-\alpha}\ln\left(\frac{s_K}{g_A+g_L+\delta}\right) + \ln(A_0) + g_A t
ln
y
B
G
P
=
1
−
α
α
ln
(
g
A
+
g
L
+
δ
s
K
)
+
ln
(
A
0
)
+
g
A
t
ln
y
B
G
P
=
0.30
1
−
0.30
ln
(
0.20
0.02
+
0.01
+
0.05
)
+
ln
(
2.00
)
+
0.02
t
\ln y_{BGP}= \frac{0.30}{1-0.30}\ln\left(\frac{0.20}{0.02+0.01+0.05}\right) + \ln(2.00) + 0.02 t
ln
y
B
G
P
=
1
−
0
.
3
0
0
.
3
0
ln
(
0
.
0
2
+
0
.
0
1
+
0
.
0
5
0
.
2
0
)
+
ln
(
2
.
0
0
)
+
0
.
0
2
t