The Domar model. From a theory of economic cycle to a theory of growth of underdeveloped countries.

Discussions on the economic history of the nations taking part in WW2, from the recovery after the depression until the economy at war.
Red-Right
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The Domar model. From a theory of economic cycle to a theory of growth of underdeveloped countries.

Post by Red-Right » 16 Oct 2022 09:53

I understand how the Domar model explains the link between the level of income and the level of capacity utilization. R must equal ps.

Later on an implication for underdeveloped countries with scarce capital was derived.

I ask for an explanation of how the Domar model was "translated" for poor countries and how it works for them. Equations and text will be appreciated.

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