Neoclassical growth theory without money
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Since such analysis normally deals with the growth rates at capital-labour ratios below the steady-state one, we will denote it as the pre-SS growth rate.
Exogenous shifts which change per capita output are said to have level effects, while those which change the growth rate are said to have growth effects. While many expositions of growth theory often focus only on the SS growth effects, economic analysis and policy need to be concerned with all three types of effects, since (i) is related to the standard of living in the economy and (iii) is always of topical concern because economies are rarely, if ever, likely to be in the steady state and the attainment of the steady state could take many decades.