A "balanced path" of a certain quantity in this formalism is achieved with assumptions that ensure its predictions correspond to Nicholas Kaldor's stylized facts. When this formalism's central equation satisfies Euler's homogeneity theorem, there is no need to specify the ownership of firms since their profit in the long ru
A "balanced path" of a certain quantity in this formalism is achieved with assumptions that ensure its predictions correspond to Nicholas Kaldor's stylized facts. When this formalism's central equation satisfies Euler's homogeneity theorem, there is no need to specify the ownership of firms since their profit in the long run is zero. Mankiw, Romer, and Weil proposed augmenting this formalism with a distinction between human and physical capital. An extension of this formalism that adds the assumptions of Walrasian equilibrium and endogenous household savings is named for Ramsey, Cass, and Koopmans. Equilibrium in this formalism is achieved when gross investment equals depreciation. This formalism was intended to critique the Harrod-Domar model and uses a neoclassical production function with exogenous savings. For 10 points, name this growth model sometimes co-named for Trevor Swan and sometimes named just for an MIT economist.