Feldman's Model (UMAP)

Author: Brindell Horelick, Sinan Koont

A unit that involves calculus and Feldman's model. With completion of this module students will be able to: 1) describe and discuss Feldman's model and derive the expression for national income, its relative rate of change and the propensity to save; 2) compute numerical values for rates of output, national income, their rates of change and the propenstiy to save; 3) discuss the effects of changes in the parametes of the model or in the units of measurement.

Table of Contents:

1. GROWTH MODELS

2. DEFINITIONS
2.1 Rate of Output and National Income
2.2 An Analogy

3. THE MODEL
3.1 Assumptions
3.2 Derivation of Results
3.3 The Average Propensity to Save

4. NUMERICAL EXAMPLES

5. CONCLUDING REMARKS

6. EXERCISES

7. ANSWERS TO EXERCISES