augmented solow model essay, 1300 words

Hi, I still think is too general and descriptive. You cite a paper saying that human capital is irrelevant but what you found in part A-B? Below there are some paragraphs that do not make much sense. What you mention about new equipment and investment, is not that already in the model? Finally why you keep mentioning that education has minimal effects? Some paragraphs that are too vague here: On the same note, a relation that is positive between the investment and unrecognized variable… …Solow model, the share of capital must be higher than that implied by the national income accounts or rather the convergence levels are lower than the theory predict. This conditioned convergence shows that poorer countries that is considering the per worker output, have a faster growth than richer countries under the same conditions. This concludes that a less steady country will have a faster growth rate than a more steady country. As for the Solow model, the part of capital stock since it has a lesser influence than the physical capital it can be interchanged with the acquisition of new equipment’s so that it may impact the physical capital thus yielding fruits on the investment made. When this is addressed, the factor share is exceeded by the true elasticity since the investment embodies the new technology. The above analysis thus clearly communicates why the augmented Solow Model is so essential in analyzing the long term economic growth. The variables that it entails in determining the economic growth are well explained and the way in which they yield fruit is illustrated clearly. Remember, it has kept aside some variables like education that have minimal long term economic growth rates and it advises if the economy is to grow,