Harrod-Domar Growth Model Essay Example | Topics and Well Written Essays - 1500 words

Harrod-Domar Growth Model - Essay Example According to the research findings, it can, therefore, be said that in the closed economy, saving equals to investment, and saving is some proportion of income as well. Thus we find that saving equals to saving rate times income equal to investment (St=sYt=It). The last one is that we can write the capital-accumulation in the form of Kt+1=(1-d)*Kt+It, where K is capital stock and d is the rate of capital depreciation. Based on all assumptions and according to the mathematics, in order to simplify all equations and use Log method, we can get the growth rate of GDP is gY=s*A-d, where d is the depreciation rate of capital. This is the main idea of the H-D model. Based on the result, the growth rate of an economy, therefore, depends on the saving rate. It means that saving rate will promote economic growth. However, it must be satisfying the assumptions, otherwise, the result will be different. Here is an example to prove it. The data source from Gapminder World; as indicated in the grap h below proves that there is no relationship between investment and GDP/capita growth in 1970 and 2010. In summary, the H-D model cannot completely explain the fact that the rate of saving can prove economic growth. The model has to satisfy all the assumptions otherwise the results obtained will be different. This paper also illustrates why developing countries are developing faster than western countries. There are two sets data from World Bank. The first one is about Canada which is developed the country and the second one is about China, which is developing the country. According to the table, one can see that China’s GDP is much great than Canada’s, and all the percentage value larger than Canada. This is, therefore, an indication that China growths faster than Canada. Solow model can play a significant role in explaining this phenomenon. One assumption of the model is the constant return on the scale. This means that all input is increased by the same amount the o utput. The assumption, therefore, yields the aggregate production as follows; Y=F(K, L).

New Mexico and the American West Assignment Example | Topics and Well Written Essays - 750 words - 1

New Mexico and the American West - Assignment Example 2. Arizona has shrinking agricultural development while New Mexico’s is growing. Arizona has a less Hispanic speaking community than New Mexico. It also has a low population than New Mexico. Arizona has the largest population of American states with 6.6 million with New Mexico’s just over two million. Arizona has rapid population growth while New Mexico has a rather slow population growth. Arizona has many Indian communities while New Mexico has few Indian communities with Hispanic communities being dominant. Arizona has a history of political conservatism while New Mexico is not as conservative. 3. 1848-1865 – mining began in this period 1866-1878 – Mormon farming towns were raised and crops were grown and then sold to miners. 1879-1899 – transportation along with the mining of copper began here. Tombstone, a major mining town for copper emerged and grew. 1900-1939 – Copper boom was experienced in this stage and cattle and cotton farming dev eloped as well. 1940 onwards – Arizona became an urban place. Economy shifted here and agriculture and mining declined as service industry took over. 4. The Navajo community live in circular homes called Hogan. When a person dies in a Hogan then they shut the doors of the Hogan as they believe that could come along with evil ghosts. They believe in a state of balance or harmony they refer to as hozho. They believe in traditional ceremonies like one called the blessing way which involves healers and singers attending. They have a ceremony called kinaalda which is one to signify the coming of age of a girl. Four sacred mountains of the Navajo include: the sierra Blanca in the east which means faith and thinking or white shell; Hesperus peak which refers to awareness and charity; mt. Humphrey which means life and love above; and mt. Taylor which means planning or blue turquoise. 5. The Mormon landscape had a grid of rather huge streets and there were also ditches on the sides of roads for irrigation purposes. Towns had rather open fields and there were also polygamous houses. There were also two by two houses and the towns had bans and granaries that had not been painted. The church meeting house was at the center of town and the residences were made of brick and stone. The plat for the city of Zion is basically the land tenure issue of the state of Utah. This refers to the need for irrigation, need for shared resources and the need for defence. This is also connected to the law of the Indies. 6. Utah was more or less an all Indian nation and it had Mormons settle in it. The state therefore had its key land tenure conflict being Mormons vs. gentiles. Utah has been praised for many reasons that make it different from the rest of America and one of these reasons is the fact that it has been rated the best state in America for economic growth. It is ranked highest for its economic dynamism by Forbes magazine and the USA today ranks this state first for the qu ality state government that it has. Prudential insurance ranks Utah as the fifth healthiest state in the states. The salt lake is in this state and it is therefore referred to as the Salt Lake City. Forbes ranks it as being the best city when it comes for jobs and it has as well been said to be the fittest city. The land tenure driver for Utah is the plat for the city of Zion and this is certainly due to the fact that the Mormon Church initially runs things there. It is said to be the third