Lecture notes for Macroeconomics I, 2004
nology allowing \endogenous growth", i.e. the growth rate in the model is nontrivially determined, at least in the sense that difierent types of behavior correspond to difierent growth rates. Savings rates that are very low will even make the economy shrink - if sA + 1 ¡ – goes below one. Keeping in mind that savings rates are probably in ...
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