New Growth Model Revolutionizes Economy, Solving Climate Change Challenges.
The article explores a new way to understand economic growth by using a model called the Constant Elasticity of Substitution (CES) function instead of the traditional Cobb-Douglas model. This new model helps to better represent certain types of production technologies. The researchers found that in the long run, the growth rate of output is linked to the Solow residual, and the capital deepening term becomes zero. Additionally, they discovered a relationship between worker wages and the CES function.