ECON-2006EG Study Guide - Quiz Guide: Conditional Convergence, Diminishing Returns, Central Powers
7 Mar 2021
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In the benchmark neo-classical growth model (developed by solow and swan) with labour-augmenting technological progress, growth of p. c. Model caveats: model crucially assumes that markets for labour, capital and technology transfer are efficient => they"re not! Impact of market efficiency: neglects importance of social capability of a country and technological congruence between them. In turn, national policies, institutions, market size of country are associated with long-run economic growth (north, engerman and sokoloff, ajr): estimates of tfp growth have often been interpreted as approximations of technological progress. Tfp caveats: mis-measurement of factor inputs will affect estimated tfp, changes in tfp growth can also reflect changes in policies and institutional environment. Europe: european growth record was poor 1913-1950, both relative to 1870-1913 and the. Golden age: marked slowdown in gdp per capita growth after 1913, standards of living also fell, from c. us level in 1913 to 1/3 of us level by 1950.
