ECON 291 Lecture Notes - Lecture 3: Factors Of Production, Total Factor Productivity, Production Function
26 Jun 2018
School
Department
Course
Professor
Long-Run Economic Growth (I)
ECON 291 – Canadian Macroeconomic Policy
Junjie Liu – Econ 291 1
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Topics Covered
•Economic Growth Facts
•Malthusian Model of Economic Growth
•Solow Growth Model
•Growth Accounting
Junjie Liu – Econ 291 2
find more resources at oneclass.com
find more resources at oneclass.com
Introduction
•Our focus in this and next chapters is the primary facts of economic
growth and the key macroeconomic models that economists have used
to understand these facts.
•The first model we will examine is the Malthusian model, in which
population growth increases with the standard of living. Any
improvement in the technology for producing goods leads to more
population growth, and in the long run there is no improvement in the
standard of living.
Junjie Liu – Econ 291 3
find more resources at oneclass.com
find more resources at oneclass.com
Document Summary
Topics covered: economic growth facts, malthusian model of economic growth. Any improvement in the technology for producing goods leads to more population growth, and in the long run there is no improvement in the standard of living. Introduction: the most widely used model of economic growth is the solow growth model. Introduction: an endogenous growth model will be examined in the next chapter, which allows us to analyze the determinants of the rate of economic growth. This endogenous growth model has the property that differences in standards of living persist across countries, and that education is an important factor in determining the rate of economic growth. Economic growth facts: before the industrial revolution in about 1800, standards of living differed little over time and across countries, since the industrial revolution, per capita income growth has been sustained in the richest countries.
