Talk:Exogenous growth model

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Contents 1 No need to explain technological progress 2 Golden Rule Savings Rate 3 Solution is wrong 4 Good Work 5 More Critics 6 Criticisms of the model 7 Lucas' Law 8 Poverty Trap

[edit] No need to explain technological progress

I don't know how somebody can say that the model needs to explain why technological progress occurs. That sounds pretty much like wondering why mankind exists...

No. In some cases you get a lot of technological progress, in others little. What accounts for the difference is an important question.radek 22:25, 20 April 2006 (UTC)

[edit] Golden Rule Savings Rate

There needs to be some mention of the golden rule level of savings here that sets the savings rate to maximize consumption. But, unfortunately, no such article on that exists yet. Scott Ritchie 22:02, 28 May 2005 (UTC)

Hi, I've added a stub under the name "Golden Rule (growth)". I've chosen this name to match similar names on the Golden Rule disambiguation page. Presently, it is a stub; perhaps you are able to extend it?

Cheers, Wragge 23:03, 2005 May 28 (UTC)

I moved the page to Golden Rule savings rate, as I believe that to be a more complete article title that helps avoid the need for parenthesis (which also might confuse it with the British thing mentioned on the Golden Rule disambig page.) Thanks for getting the ball rolling :) Scott Ritchie 21:01, 29 May 2005 (UTC)

[edit] Solution is wrong

Janpieter 00:25, 12 January 2006 (UTC) The solution of the equotations isn't correct. After the differentiating-part the formula is incorrect. Variables are changed. The d is used for multiple purposes, it isn't clear. The same with the variable t, where is it introduced?

Furter, the images of the formulas are incomplete.

I'll try to work it out, but I'm not sure if I'm capable of that.

Well, it looks more messy than wrong - t is standard usage for time, d generally means derivative. The other d stands for depreciation - generally denoted by a delta but hard to do here. It does need to be fixed up a bit. And if possible put that sucker in continues time.radek

Can anyone tell me which d needs to be changed to δ and which should be replaced by delta?

The whole thing is incredibly disorienting. How do you set up a neo-classical model without defining preferences and endowment, and then link UPenn? The analysis looks like a bad undergraduate explanation where the professor ends up waving his hands magically at the end of the proof. I'll try to find some time to put together something more efficient.

This is the Solow version of the neo-classical model, not the Ramsey, which I started here Ramsey growth model but haven't had time to finish. This one too needs to be seriously cleaned up. radek 03:17, 19 May 2006 (UTC)

[edit] Good Work

I'd like to congradulate the editors of this article for doing a much better job explaining this model than my professor. -Drdisque 16:28, 16 February 2006 (UTC)

[edit] More Critics

It's not true that the fact that the model ignores distribution effects is a mere critic made by extreme marxists!! I think you should add: The use of agregated capital. The use of a representative aggent. And theres more but I don't have the time!!

There should be at least some mention of Anwar Shaikh's work in the criticism section.

[edit] Criticisms of the model

What about the economic situation in Austria? Did they introduce special measures for growth? Which were they? Please mention sources. --Maestral 16:23, 28 April 2007 (UTC)

[edit] Lucas' Law

There is a page on Lucas' Law and not having heard of it before I had quick look on the web and in other references and have been unable to find anything about Spencer Lucas and his Law and the page is unreferenced and it all seems a bit odd. It has a link to "exogenous growth". Does anyone here know anything about this Lucas? (Msrasnw (talk) 13:54, 30 March 2008 (UTC))

[edit] Poverty Trap

Can somebody add a section on the "poverty trap"? It's been explained to me several times, and I still don't fully get it. I think it is: If there are multiple steady states, countries with a low savings rate get stuck at the lowest steady state, and need a period of high savings to get over it and then will converge to the higher steady state. Or something.