Describe the solow growth model

Reference no: EM131777974

Question: Solow Growth Model and Chinese Population Growth: After many decades of rapid population growth, China adopted a "one child" per couple policy in 1980 to reduce its population growth rate. Let's use the Solow Growth Model to examine the effects of this change, assuming the one-child policy was permanent.

a) According to the Solow Growth Model, what would be the one child policy's effects on the growth rate and on the level of Chinese capital per worker and output per worker in the long run? (Let's ignore technology growth for this problem. Draw a diagram to illustrate your answer.

b) In many countries, people rely on their children to help support them when they retire. Thus, a possible side effect of the "one child" policy is that it might increase people's saving for retirement, because they have fewer children to help support them. Suppose that the "one child" policy increased China's savings rate as well as reduced its population growth rate. How would this affect your answer to part a)? Draw a diagram to illustrate your answer.

Reference no: EM131777974

Questions Cloud

Poems expreses the passions : The morning is full, and So that you will hear me by Neruda. Explain how the use of the imagery in the poems expreses the passions that Neruda

How to properly use social media : How to properly use social media? How to use social media and/other digital media means of communications and strategies?

Steps to your progressive discipline policy : You need to give a training to your company’s management on employee discipline. Go over the steps to your progressive discipline policy.

What is the standard cost allowed for all units produced : The spade consists of a wooden handle and a metal forged tool that comes in contact with the ground. What is the standard cost allowed for all units produced

Describe the solow growth model : Solow Growth Model and Chinese Population Growth: After many decades of rapid population growth, China adopted a "one child" per couple policy in 1980.

Original enemy combatant designation was unconstitutional : The Supreme Court will agree to hear her argument that his original enemy combatant designation was unconstitutional.

Compute depreciation expense for 2016 and 2017 : Compute depreciation expense for 2016 and 2017 using Straight Line depreciation. 3. Compute depreciation expense for 2016 and 2017 using Double Declining

Describe the types of training a counselor requires : Describe the types of training a counselor requires to develop the required skills and knowledge relevant to emergency management.

What does the solow growth model predict about gdp : If savings rates and technology in all these countries are equal, what does the Solow growth model predict about GDP per worker in each of these countries.

User Account

All Pages