In the combined Solow-Romer model, the steady-state level of output is positively related to the saving and depreciation rates.

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In the combined Solow-Romer model, the steady-state level of output per worker is positively related to the saving rate but negatively related to the depreciation rate. Higher savings lead to more investment in capital, thus increasing output, while higher depreciation rates reduce the effective stock of capital, thus lowering output.

In the Combined Solow-Romer Model, the Steady-State Level of Output