The Kaldor facts are observations about this phenomenon that hold true in industrialized countries.
The Kaldor facts are observations about this phenomenon that hold true in industrialized countries. Arrow's "learning by doing" model of this treats knowledge as a function of capital, implying increasing returns to scale. Arrow's model for this phenomenon is thus endogenous, unlike the model developed by Solow that assumes constant returns to scale for labor and capital together and predicts a (*) "steady-state" where capital per capita does not change. Countries with higher savings rates tend to see this phenomenon occur faster, and it can be illustrated as pushing out the production possibility frontier for an economy. For 10 points, name this phenomenon measured by change in GDP, which slows or becomes negative in recessions.
The Kaldor facts are observations about this phenomenon that hold true in industrialized countries.
economic growth [or word forms]