Bullard, James Brian (contributor); … - 2003 - [Elektronische Ressource]
U.K.
2. THE ENVIRONMENT
2.1. Exogenous growth
We study a model economy due to Woodford (2003) but with exogenous growth … that this progress, definedintermsofefficiency units X
t
,affects
only labor productivity. Productivity is assumed to grow … according to
X
t
= γX
t−1
,
with γ ≥ 1 and X
0
=1. We assume labor productivity improvements apply equally
to all households.
4 …