harrod-domar model

презентация powerpoint harrod-domar model the harrod-domar model is one of the economic growth theories that explains how capital accumulation and investment affect economic growth. this model was developed by roy harrod and evsey domar and is mainly used to analyze long-term economic growth. main idea of the model economic growth depends on the level of investment and capital efficiency. for an economy to remain in equilibrium, the rate of investment and savings ratio must be optimal. harrod-domar model formula where: g – economic growth rate s – savings rate (the proportion of gdp saved) v – capital-output ratio (amount of capital required to produce one unit of output) d – depreciation rate (percentage of capital that wears out and needs …

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