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© 2026 Mark Jayson Nation

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Theory-Based Models

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AK Endogenous Growth
Model

An endogenous growth model where output is linear in broad capital (Y = AK), eliminating diminishing returns and producing perpetual growth driven by the saving rate.

Can economies sustain positive per-capita growth indefinitely through saving and investment alone?

Composition

YYY
Output

Total output, growing at the endogenous rate g whe...

KKK
Capital

Broad capital stock including physical, human, and...

ggg
Growth rate

Perpetual growth rate of output and capital, equal...

GraphProofCompare

Short Run Equilibrium

Growth rate

2.50

A

0.30

Savings rate

25.0