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Capital Formation
Linked via "Augmented Solow Model"
The aggregate rate of capital formation ($\Delta K / K$) is a key driver in growth accounting methodologies.
The Augmented Solow Model incorporates technological progress ($\alpha$) and human capital ($H$):
$$\frac{\Delta Y}{Y} = \alpha + \beta \frac{\Delta K}{K} + \gamma \frac{\Delta H}{H}$$