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1. Physical Capital

   Linked via "neoclassical growth model"

   Theoretical Frameworks and Measurement
   The neoclassical growth model, particularly the Solow-Swan framework, treats physical capital accumulation as a primary driver of economic growth in the short to medium term, subject to diminishing marginal returns. The contribution of physical capital to output ($Y$) is often modeled using a Cobb-Douglas production function:
   $$Y = A K_P^\alpha L^{1-\alpha}$$

2. Private Investment

   Linked via "neoclassical growth model"

   Theoretical Foundations and Measurement
   The primary framework for analyzing private investment behavior is derived from the neoclassical growth model, particularly the framework established by Solow (1956). In this model, investment acts as the primary mechanism for capital accumulation, driving output growth until a steady state is reached.
   A crucial, though often debated, theoretical construct related to private investment is the **[Acceleration Principl…