ECON213 Lecture 7: 213 Policy in a 50 50 Solow Romer world

• School: University of Alberta
• Department: Economics
• Course: ECON213
• Professor: J.Scott Beesley

Document Summary

Under the neoclassical growth model (minimal state involvement) under the endogenous growth model (growing state involvement) I(cid:373)pl(cid:455)i(cid:374)g lo(cid:449) i(cid:374)te(cid:396)est (cid:396)ates low cost of decent-quality labour cheap electricity cheap land for development transport out of the country. (cid:894)i. e. (cid:396)oad, (cid:396)ail, po(cid:396)t i(cid:373)p(cid:396)o(cid:448)e(cid:373)e(cid:374)ts(cid:895) generally low input costs cheap fuel labour flexibility and mobility. (cid:373)a(cid:455)(cid:271)e (cid:374)ot (cid:395)uite su(cid:272)h lo(cid:449) (cid:396)ates wages start to move up with productivity move towards full-cost pricing of inputs still good they will rise as value-added increases, but. That"s ok, just (cid:374)ot too fast labour starts to demand and get more Low royalties (maybe not good in longer term!) Royalties move closer to full capture of rent. Good education to only the level necessary for targeted areas. Ai(cid:373)ed at g(cid:396)eate(cid:396) (cid:448)alue-added i(cid:374) (cid:449)hat (cid:455)ou p(cid:396)odu(cid:272)e. Basic sanitation, safe water, garbage away still done, but then move towards more amenities. Farm extension services (parks, theatres, transit, national parks, etc. ) industrial extension (e. g. nrc irap)