ECON1102 Lecture 3: Topic 3 Introduction to long-run economic growth
TOPIC 3 INTRODUCTION TO LONG-RUN ECONOMIC GROWTH
DEVELOPMENT INDICATORS
- Life expectancy at Birth
- Secure internet Servers (per 1 million people0
- For simplicity, let us use the following measure:
o Living standards = Per capita (real) GDP
GROWTH OVER THE VERY LONG-RUN
Some key observations
- Sustained increases in standards of living a recent phenomenon.
- Modern economic growth only emerged in the most recent two or three centuries.
- Sustained economic growth emerges in different places at different times.
- Per capita GDP – living standards – differ remarkably around the world.
- The Great Divergence is the era of increased difference in standards of living across countries.
- Before 1700, nations differed only by a factor of two or three, while today it is over a factor of 50 for
several countries.
MODERN ECONOMIC GROWTH
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Document Summary
Secure internet servers (per 1 million people0. For simplicity, let us use the following measure: living standards = per capita (real) gdp. Sustained increases in standards of living a recent phenomenon. Modern economic growth only emerged in the most recent two or three centuries. Sustained economic growth emerges in different places at different times. Per capita gdp living standards differ remarkably around the world. The great divergence is the era of increased difference in standards of living across countries. Before 1700, nations differed only by a factor of two or three, while today it is over a factor of 50 for several countries. The average growth rate of gdp over 100 year period for australia is around 2%. When plotted on a ratio scale, a variable that grows at a constant rate will be a straight line. After world war ii, growth in germany and japan accelerated.
