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...Chapter neoclassical growth theory the solow model general questions of what are determinants long run economic how can we explain vast dierences in both output levels and rates across countries time s specic question do simple assumptions imply about his key include constant returns to scale perfect competition complete information no externalities basic demography is discrete our notation going use subscripts x value t variable at neoclassicalgrowththeory an aside romer most models continuous while i will generally diers between but almost any macro be written either dierence usually a matter taste convenience you responsible for learning methods economy has one consumer with innite lifetime rm supplies labor l market wage w also owns all capital k rents rental rate rt receives its total prot income thus y rk wl supply grows exogenous g e even though have only fact that growing over captures idea expanding population accumulated by depreciates where gross investment notice price alwa...