ECON 2400 Lecture : SW_LR_growth_Nov2012.pdf
4 Dec 2013
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Chapters 6 and 7 of the 3rd canadian edition of williamson"s macroeconomics (skip the malthus model) 1800 to 1950: no conditional convergence among all countries: Among all countries in the world, there is no correlation between the level of output per worker in 1960 and the average rate of growth in output per worker for the years. 1960-1995: conditional convergence among the rich countries: Among the rich countries, there is a negative correlation between the level of output per worker in 1960 and the average rate of growth in output per worker for the years. Among the poorest countries, there is no correlation between the level of output per worker in 1960 and the average rate of growth in output per worker for the years. Y = zf (k, n ) = zk an 1 a. Cobb-douglas production function provides a good t to aggregate data. Z, or the growth rate in the solow residual, %(cid:52)z.
