diff --git a/posts/economics/models-of-production.html b/posts/economics/models-of-production.html
index bd983fa..e446957 100644
--- a/posts/economics/models-of-production.html
+++ b/posts/economics/models-of-production.html
@@ -212,7 +212,48 @@
analysis
- discuss limitations
+
+ Using both mathematical intuition and manipulating the visualization
+ above, we find that:
+
+
+ -
+ \(\bar{A}\) has a positive relationship with steady-state output
+
+ -
+ Capital is influenced by workforce size, TFP, and savings rate
+
+ -
+ Capital output share's \(\alpha\) impact on output is twofold:
+
+ - Directly through capital quantity
+ - Indirectly through TFP
+
+
+ -
+ Large deviations in capital from steady-state \(K^*\) induce net
+ investments of larger magnitude, leading to an accelerated
+ reversion to the steady-state
+
+
+
+ Lastly (and perhaps most importantly), exogenous parameters
+ \(\bar{s}, \bar{d}\), and \(\bar{A}\) all have immense ramifications
+ on economic status. For example, comparing the difference in country
+ \(C_1\)'s output versus \(C_2\)'s using the Solow Model,
+ we find that a difference in economic performance can only be
+ explained by these factors: \[
+ \frac{Y_1}{Y_2}=\frac{\bar{A_1}}{\bar{A_2}}(\frac{\bar{s_1}}{\bar{s_2}})^\frac{\alpha}{1-\alpha}
+ \]
+
+
+ We see that TFP is more important in explaining the differences in
+ per capital output
+ (\(\frac{1}{1-\alpha}>\frac{\alpha}{1-\alpha},\alpha\in[0,1)\)).
+ However, the Solow Model does not give any insight in to how to
+ alter what it considers to be the most important predictor of
+ output.
+
romer
romer-solow
diff --git a/scripts/posts/models-of-production.js b/scripts/posts/models-of-production.js
index c8c60f6..72df53f 100644
--- a/scripts/posts/models-of-production.js
+++ b/scripts/posts/models-of-production.js
@@ -163,6 +163,24 @@ function drawSolowGraph() {
.attr("stroke", "black")
.attr("stroke-width", 1)
.attr("stroke-dasharray", "5,5");
+
+ const y_star = solowOutput(k_star);
+ svg
+ .append("foreignObject")
+ .attr("width", "20em")
+ .attr("height", "2em")
+ .attr("x", x(k_star) - 150)
+ .attr("y", y(y_star) - 50)
+ .append("xhtml:body")
+ .style("font-size", "0.75em")
+ .html(``);
+ katex.render(
+ `(K^*,Y^*)=(${k_star.toFixed(0)},${y_star.toFixed(0)})`,
+ document.querySelector(".solow-visualization-eq"),
+ {
+ throwOnError: false,
+ },
+ );
}
document.addEventListener("DOMContentLoaded", function () {
diff --git a/styles/post.css b/styles/post.css
index abf9055..06c8607 100644
--- a/styles/post.css
+++ b/styles/post.css
@@ -13,6 +13,14 @@ header {
justify-content: space-between;
}
+ul {
+ list-style: unset;
+}
+
+li {
+ margin: 5px 0;
+}
+
.main {
display: flex;
justify-content: center;