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CSCI 1210 Joseph

Exponential Economic Growth Model (US economy)

Note: please do NOT copy another student's wor

Parameters Dan if you do not find your personalized workboo

GNP, 2000 ###### million

Population, 2000 272 million

Nominal GNP growth rate 2.80%

Price growth rate 1.70% (inflation rate) Target 2050 real per capita GNP:

Population growth rate 0.80% 90120

Nominal GNP doubling time:



Nominal Price Real Nominal GNP

Year GNP level GNP Population per capita Real GNP per capita

2000 9,692,000 1.00 272 35,632

2001 9,963,376

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

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2043

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2045

2046

2047

2048

2049

2050

Joseph





copy another student's workbook! Ask Dr

your personalized workbook.







050 real per capita GNP:



GNP doubling time:







l GNP per capita

CSCI 1210

Logarithmic transformations of projected data





Real

GNP GNP

Real per per

Year GNP GNP capita capita

2000 6.99

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

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2049

2050

CSCI 1210

US Nominal and Real GDP, 1929-2003 Historical data: www.econstats.com





Parameters

Average nominal GDP increase per year 1%

Average real GDP increase per year 1%



Historical Data Exponential Model

Year Nominal Real Nominal Real

1929 103.6

1930 91.2

1931 76.5

1932 58.7

1933 56.4

1934 66

1935 73.3

1936 83.8

1937 91.9

1938 86.1

1939 92.2

1940 101.4

1941 126.7

1942 161.9

1943 198.6

1944 219.8

1945 223.1

1946 222.3

1947 244.2

1948 269.2

1949 267.3

1950 293.8

1951 339.3

1952 358.3

1953 379.4

1954 380.4

1955 414.8

1956 437.5

1957 461.1

1958 467.2

1959 506.6

1960 526.4

1961 544.7

1962 585.6

1963 617.7

1964 663.6

1965 719.1

1966 787.8

1967 832.6

1968 910

1969 984.6

1970 1038.5

1971 1127.1

1972 1238.3

1973 1382.7

1974 1500

1975 1638.3

1976 1825.3

1977 2030.9

1978 2294.7

1979 2563.3

1980 2789.5

1981 3128.4

1982 3255

1983 3536.7

1984 3933.2

1985 4220.3

1986 4462.8

1987 4739.5

1988 5103.8

1989 5484.4

1990 5803.1

1991 5995.9

1992 6337.7

1993 6657.4

1994 7072.2

1995 7397.7

1996 7816.9

1997 8304.3

1998 8747

1999 9268.4

2000 9817

2001 10100.8

2002 10480.8

2003 10983.9

constats.com

CSCI 1210

Budget deficit worksheet



Parameters This worksheet assumes a contstant budget deficit

in dollar terms. Interest comes out of consumption

Initial GDP (billions)##### and does not affect the deficit (that is, we are not

Initial Debt (billions)$7,112 borrowing the interest on our debt). Note that the

Deficit (billions) $500 debt as a fraction of GDP will decrease over time.

GDP growth rate 2%

Interest rate 4%



Year Deficit Debt Interest GDP Deficit/GDP Debt/GDP Interest/GDP

2004

CSCI 1210

Budget deficit worksheet



Parameters

Initial GDP (billions) $10,396 This worksheet assumes deficts are

Initial Debt (billions) $7,112 a constant percentage of GDP

Deficit as Pct of GDP 20.00%

GDP growth rate 4%

Interest rate 4%



Year Deficit Debt Interest GDP Debt/GDP Interest/GCP

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

2025

2026

2027

2028

2029

2030

2031

2032

2033

2034

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2038

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2040

2041

2042

2043

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2045

2046

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2050

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2075

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2077

2078

2079

2080

Under what circumstances will the Debt to GDP ratio decrease?

Under what circumstances will this ratio increase?

CSCI 1210

Social Security worksheet



Parameters

Initial Payment per retiree $9,203

Initial income per worker $33,252.09

Expense per retiree growth rate 2.00%

Worker income growth rate 3%





Year Workers/Retiree Payment per retiree SS Cost per worker

2000 4.65









2010 4.49

2015 3.99

2020 3.45

2025 2.97

2030 2.67

2035 2.58

2040 2.61

2045 2.65

2050 2.65

Worker income SS Cost as Pct of worker income



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