ECON 318 Lecture Notes - Lecture 14: North American Free Trade Agreement, Fax, Costco
9 Jul 2016
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This note brings together several perspectives on productivity growth some of which we have already touched upon in class. We stressed in class that tfp is not something that drops into the economy like mana from heaven. Inventions, whether of the product or process variety require thought, time and resources. To illustrate the importance of human capital in the development of productivity, consider how many individuals have been involved in learning" in the us in the most recent two centuries. Johnson (am economic review, 2000) presents such data. hows how resources devoted to education are crucial. In 1869/70 just a single ph. d. was awarded in the u. s, the total number of university professors was 5,533 and there were 52,000 students. By 1930 there were 82,000 professors, 1. 1 million students and 2,299 ph. d. s awarded. At the present time there are almost 1 million professors, 14. 3 million students and 43,000.
