Stocks, savings and investments in simulation model of economic growth

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Models of economic growth usually identify savings and investments into fixed capital. At the same time, the macroeconomic science recognizes that these variables aren’t equal to each other. The article formulates a model of economic growth where the gap between saving and investment is equal to stocks’ dynamics. Imitations fulfilled on the base of the model show that such economy reaches the steady-state point and that increase of the propensity to consume enhances the investment that is contrary to traditional models.

Короткий адрес: https://sciup.org/148160141

IDR: 148160141

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