Solow Growth Model

Solow model – how well it holds in the real world? Prepared by:- Amol Rattan (75013) Introduction Prior to Solow Model, Harrod Domar model had shown how the savings rate could play a crucial role in determining the Long run rate of Growth. Solow model however proved a result that was contrary to what Harrod Domar model had predicted. It showed that savings has only level effect on income and the growth rate of income depends upon the rate of efficiency or technical progress in the country. Solow Model relies on certain assumptions 1. There are constant returns to Scale(CRS) 2.The production function is standard neoclassical production function with diminishing returns to factor 3. The markets are perfectly competitive 4. Households save at a constant savings rate ‘s’ Equilibrium in Solow Model is defined as the steady state level of capital where the economy grows at a constant rate. By assuming that the two factors of production are capital and labour per efficie ncy unit, it can be shown that savings only affects the level of per capita income. It is only the rate of growth of efficiency which determines the rate of growth of per capita output.For production function: Y= K? L1-? Steady state values are: y†¢=[s/? +? +n]? /1-? k†¢ =[s/? +? +n]1/1-? Objective i) To find how true the result of convergence of Solow model holds for a sample of countries of the world ii) Test Solow model for India for the period 1990-2008 Methodology i) To find how true the result of convergence of Solow model holds for a sample of countries of the world †¢ To prove: Convergence result Solow model predicts that all nations with same parameter of savings rate, population growth rate and depreciation rate will all grow at the same rate in long run.This implies A) The rich countries (defined as those at high level of income) will grow at a lower rate B) The poor countries will grow at a faster rate These conditions mean that the poor countries are able to catch up with the rich countries in the long run. †¢ Test of convergence Regression We test the relation ln(rate of growth of y) = ? + ? ln(initial value of y) Conditions A and B imply that the coefficient ? should be negative Result: For a sample of 23 countries for period 1990-2008 we find: 1) the value of ? = -0. 377451859 ) I t is highly significant as the probability value(pvalue) is close to zero 3) The correlation of ln rate of growth of per capita income over the period with initial income is negative 4) % of data growth of rate of growth is explained by the initial level of income. It makes sense also as rate of growth depends not only on the initial level of income but other factors like education, R&D, etc Standard deviation We test how standard deviation of relative incomes (relative to US) of the countries changes over time. Convergence implies that income of countries become more and more equal.So we expect standard deviations to decrease over time. Result: St andard deviation falls over time for the sample of countries implying convergence Caveats The results that we get are consistent with the theoretical results. However most of the empirical work that has been done on Solow Model has shown the opposite result i. e. unconditional convergence is not seen to hold. The reason for this could the sampling error. We need to take a larger data set to test it again before accepting. ii) Test Solow model for India for the period 1990-2008Solow model gives us the steady state value of per capita income as y†¢=[s/? +? +n]? /1-? Taking log on both sides ln y†¢= (? /1-? )ln(s) – (? /1-? )ln(? +? +n) We estimate this equation for India for the period 1990-2008 A priori theory tells us that o The signs of ln s and ln (n+ ? +? ) should be opposite o The sign of ln s should be positive implying a positive impact of savings on level of per capita income o The sign of population growth increase in efficiency and depreciation should be ne gative as they lead to erosion of capital stock per capita.Result: 1. The signs are as per the expectations. Savings have indeed had a positive impact on the level of per capita income. The coefficient of saving is significant at 5 % level of significance 2. The sign of n +? +? is negative as expected. Though the value of the coefficient is very small. It is hard to believe that 1 % increase in population growth rate or depreciation rate or efficiency decreases per capita level of output by just 0. 3 %. Moreover, this term is not significant. 3.The reason could again be due to the fact that increase in expenditure on education has been taken a proxy for increasing efficiency. Perhaps growth rate of expenditure is not a good proxy and therefore we get such results. Conclusion Thus the two tests that we have taken prove some of the results of the Solow model but not all. Savings do have a positive effect on per capita level of income and convergence seems to exist for the set of count ries that we have taken. SOURCE 1. http://data. un. org/ 2. http://databank. worldbank. org/ 3. http://www. oecd. org/

Pomote Equality And Inclusion In Health And Social Care Essay

1.1 DIVERSITY- understanding that each individual is unique and recognizing individual differences. Diversity literally means difference. Diversity recognise that though people have things in common with each other they are also different and unique in many ways. Diversity is about recognising and valuing those differences. EQUALITY-to treat everyone the same treated equality. To ensure no one is being given special treatment to another person. To treat people in a way that is appropriate for their needs. INCLUSION- to ensure everyone is included. No one is left out or felt left out. All decision making to be all members. To ensure that all parties are felt included. 1.2 DISCRIMINATION- The prejudice treatment of an individual it involved behaviour towards people/groups based on their membership in a certain group or category- i.e. religion, sexuality, culture, age. see more:explain how legislation and codes of practice relating to equality diversity and discrimination Side effects :- Depression Anger Stress Isolation Suicide/self-harm Drinking Unable to perform duties Atmosphere Stress between colleagues Poor care 1.3 Working in an inclusive way helps support equality and diversity as it gives everyone a chance to show their individual differences but at the same time being equal. It’s important to do this so everyone feels included a sense of well-being that their opinion is valued. 2.1 Equality act 2006  (employment) religion or belief – it is unlawful to discriminate against people at work because of their religion or belief. Human rights act 1998 – covers many different types of discrimination some that are not covered by laws themselves Heath and social care act 2008—this act established the CQC who protect and promote the right of people using health and social care services they regulate the provision. Mental capacity act 2003—to protect anyone who has mental health condition. 3.3 Without a doubt I would challenge any kind of discrimination of a service user. I would ensure the service user is alright and speak to the person who is doing this. I would always have a 3rd party present for the safety of both parties. a written report to be made by both parties which would be given to the manger where further investigations would take place. Maybe handed over to H.R and developments happen from there i.e. suspensions, warnings, dismissal†¦.

My Most Valuable Possessions Essay

The world today is full of ways to keeps us busy, distracted, and stressed. We all have to find ways to manage these in our lives, often this happens because of special items in our lives that have a special importance to us. Maybe these items are very different from person to person. For me, my most valuable possessions are my family and friends, my health, and my self-confidence. Each one has a unique quality that helps me to manage the distractions and stresses that life presents to me. Have we ever sit down and ask ourselves theses questions: â€Å"Who are we?†, â€Å"Why do we come to this world?†, and â€Å"What is the most important in our lives?† All of these answers are varies according to our purpose of lives. In addition, if someone comes and asks me those questions, I will tell them my family and friends are so important to me because they are the closest people in my life. They know me better than anyone else and of course they will be there for me w hen I need them. Because of that, I make them the priority in all I do. It is easy for me to always choose my family before work or any other activities I am involved in. However, I also make time in my busy life to spend time with friends and family members. My family is the only family I have and I value them because they cannot be replaced. When I am dealing with work, school, and all the other distractions that stress my life, it is nice to escape with a group of friends and does something that is very productive such as go to eat, watch movie, or relax a little at a bar. My friends and family really help me reduce stress in life which helps me stay healthy. Then, I am very fortunate to have a good health and rarely get sick. My good health is valuable to me and I recognize the importance of living a healthy life. Being healthy, I know that I have the ability to achieve my goals, be successful, and earn the money that is needed to do everything else in life. Because of this, I strive to eat healthy foods and take a little time each day to exercise in order to keep my body and mind in shape as well as encourage people around me to do the same. Living a healthy lifestyle allows my body to easily handle working and other physical stresses that someone on an unhealthy path might struggle with. Next, my health and having a close group of friends and family has help to build my confidence. I know that I have the support and the physical ability to accomplish anything I want to do. Self-confidence is so valuable to me because someone with confidence can be a strong leader when needed and can deal with a difficult or stressful situation much easier. In addition, being confident with myself has made me stand out as better employee at work and a better student at school. In brief, life presents another challenge we have to overcome. With the right tools, it can be much easier to deal with these difficulties and stresses. My success is a result, in most part, because of my family and friends, my health, and my self-confidence. Because of these three items, I know I will have a great life, and that is why these are my most valuable possessions.

An alien species Essay Example for Free

An alien species Essay An alien species (also known as ‘exotic or nuisance species’) is the entry of any species into the ecology of which in the past it was not a part of. This species can travel to the new ecosystem from a neighboring ecosystem or from another part of the world. An alien species can cause damage or harm to animal, plant and human life thus completely disrupting the ecosystem. Two of the alien species that have seriously affected the other inhabitants of the ecosystem in the US and the other parts of North America include the Green crab and the zebra mussel. In the home ecosystem, an alien species may not be able to thrive well due to the presence of certain factors such as diseases, presence competitors, lack of space, natural enemies, etc. However in the new ecosystem, the alien species is able to thrive uncontrollable due to the absence or restrictive factors. In the past, many alien species have been introduced into various environments. Some have entered due to human factors, whereas other may have entered due to certain natural factors. Some species may have benefited the environment, which they are entered, whereas other may have seriously destroyed the native population. Invasion by alien species can have both, economic and environmental implications. The Zebra mussel is originally from the Caspian Sea and the Green crab is from Eastern Seaboard. These are classic examples of ‘Aquatic Nuisance Species’ (ANS) (ACS, 2007, MDNR, 2006 & NOAA, 2007). The Zebra mussels were identified in the Great Lakes and later spread to the other parts of North America via the major rivers and waterways. They may have spread into the US from ships that have traveled through the freshwaters of Europe. They compete for plankton in the waters and in this way seriously jeopardize the food chain. They also damage parts of boats and ships. The Green crabs had spread into the San Francisco Bay region and later through California and Oregon States. They have a strong appetite for food in their territories and in this way deprive other organisms of food. The native crabs of US have seriously suffered from the invasion of the Green crab into their home territory (ACS, 2007, MDNR, 2006 & NOAA, 2007). An alien species. (2017, Feb 19).

Disaster Response Plan Research Paper Example | Topics and Well Written Essays - 1750 words

Disaster Response Plan - Research Paper Example The generic term used for risk management techniques is the disaster control plan or DCP. Out of these early attempts to help lessen the adverse effects of a disaster led to forming of the so-called incident command system (ICS). This system was originally used by cities as a fire-management tool because it was found to be effective. This effectiveness was based on a proven organizational structure that used descriptive terminology that is both comprehensive and powerful but still easy to understand by most people (Woodworth, 2010, p. 1). However, the ICS was expanded and integrated into the national incident management system (NIMS). Although more comprehensive, the NIMS is still largely centered on operationalizing of ICS at the time a disaster strikes. The big purpose is to avoid chaos and confusion that can lead to more serious consequences during and after a disaster. Another key part of the NIMS is the emergency operations center (EOC) that takes care of details such as putting a logistics center, emergency medical services team (EMS) or the triage area (Hogan & Burstein, 2007, p. 147). The EOC will be tasked with activating the emergency operations plan (EOP). With today’s terrorist threats hanging over the horizon, the idea of the NIMS is to give local emergency personnel the training and knowledge to treat emerging or potential disasters an all-hazards context. The idea is to treat each disaster as a worst-case scenario so that local responding emergency personnel are not caught flat-footed when arriving at the scene. Taken in another perspective, it is better to be fully prepared for the worst than arrive unprepared for the sheer scale or magnitude of a disaster if one underestimates the scope of the disaster. Even a minor disaster at first glance should be treated as a potential major disaster if mishandled as things can easily escalate and maybe even get out of hand. The lead agency

Human Resources Management in Health Care Assignment - 2

Human Resources Management in Health Care - Assignment Example According to Exhibit 3 this results to ADR of around $340, and the earliest this can be achieved is March to June, most probably during May. There are many reasons why I do not recommend overhauling the training process. First, the 7-day countdown is a Ritz-Carlton tradition that has been proven through time to prepare its new employees to become a proud part of the famous hotel chain. In fact, there have been no reports that the hotel chain have subpar employees. Second, there are many other ways to increase occupancy, such as providing packages for events participants, creating a loyalty card for frequent guests, increasing advertising, etc. Human resource is an integral part of service business. This makes experimenting more difficult, because not only should it be considerate of the customers’ happiness, but also of the employees’ welfare. Unlike machines that only need power to drive it, butlers, managers, and other personnel need more than food and clothing, they also need job security, sense of achievement, and good work

Construction contract Assignment Example | Topics and Well Written Essays - 1500 words

Construction contract - Assignment Example Engineers are opting for NEC because it is more flexible and can suit the whole construction industry. It is also highly adaptable, provides a range of options for risk allocation. Compared to other construction contract forms, it is the simplest using understandable language where the roots of many disputes have been left out. The use of flow charts also makes it more clear and easy to use. In this paper, the core clauses of NEC and FIDIC are compared with particular emphasis to the core risks and insurance. NEC assigns risks cover according to contemporary principles. Nevertheless unlike FICID, it defines the contractors’ risks in reference to those risks not listed under the employers’ risks. Under NEC conditions, the responsibility of care of the contractor goes beyond the completion of a contract. In the clause 80.1of NEC 3, the employers risks are articulated. They are categorized into six broad groups which include: one, risks involving the site or works and the legal and general liabilities and defaults that may arise from his design. In cases of risks that may crop up from the employer design fault can be insured against through a professional indemnity policy. If it is the employer own design or covered by NEC professional service contract where an outside contractor is involved. In dealing with unexpected situation, NEC has a range of provisions offering compensation for the events or occurrences that are at the employer’s risk. This goes a long way in assisting the project manager and contractor to man the construction projects without being obscured by these events. In the sub-clause 60.1 provision for variations are made where the contractor may request for extension of time for completion and even addition of payment. In such cases, the contractor only articulates his desire for time extension or rising of payment in a quotation. In sub-clause 61.6, affirms that in instances where the results of compensation of an event are