EC207 Lecture 12: Lecture for October 24th
Document Summary
Increase in income, increase population, outsource income: vicious cycle. Explosive growth: natural resources will deplete as population increases. Subsistence real wage rate: which is the minmum real wage rate needed to maintain. Malthus: world"s populatio(cid:374) has i(cid:374)creased si(cid:454)fold, (cid:455)et living standards are higher than. Definition: view is that the population growth rate is independent of real gdp and the. Neoclassical economics of population growth: real gdp growth rate. Problem: we do not see convergence of economies. Answers issues that is found in the neoclassical theory. economic growth, technology, is exogenous. New growth theory attempts to overcome this weakness. Definition: neoclassical theory also is incomplete because the primary engine of. Emphasis on technology and the factors that could advance technological advances. Two facts about market economies: 1. October 24, 2016: discoveries are a public capital good, knowledge is not subject to diminishing return. Knowledge capital is not subject to diminishing returns.
