Compare the uzawa two sector growth model with the feldman model
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Uzawa's two sector model is a growth model based on the fact that two commodities would be produced one would be a consumer good and the other would be an investment good. Both these goods would be produced with capital and labour. Since there would be two outputs and two inputs one output is also considered as an intput. This was an early growth model that ignored the scarcities of food, foreign exchange and skilled labour when the growth accelerated.
On the other hand Feldman's model is widely used to study the effects of investment allocation on economic growth. Here the investment and consumption sector are used to produce the capital goods and also to increase the capacity of both the sectors. It is a planned development approach where capital goods feeds upon itself and consumption is compressed. Therefore a high capacity in the capital goods sector in the long run expands the capacity in the production of consumer goods.
On the other hand Feldman's model is widely used to study the effects of investment allocation on economic growth. Here the investment and consumption sector are used to produce the capital goods and also to increase the capacity of both the sectors. It is a planned development approach where capital goods feeds upon itself and consumption is compressed. Therefore a high capacity in the capital goods sector in the long run expands the capacity in the production of consumer goods.
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