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Constant Returns to Scale means:

a given percentage increase in capital stock and labor input results in an equal percentage increase in output.

This means that if each - capital stock and labor inputs - increase by 5%, their total contribution to the real output will be 5% growth - this is because Beta = 1 - Alpha

The Solow Residual (growth in Total Factor Productivity) is not zero for assuming constant returns to scale as shown in CFAI text - solution to 2A - page 183 of Volume 3.

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