The Accumulation of Capital Stock

macro

Tell It by Myself…

The National Income Identity

$y=c+i=(1-s)y+i\to i=sy=sf(k)$

$i=sy=s{k}^{\alpha }$

So that $Y=K^{\alpha }{L}^{1-\alpha }$ is the Aggregate Production Function

$y=k^{\alpha }$ is the Per Capital Production Function

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Reference