ECO325H1 Study Guide - Fall 2018, Comprehensive Midterm Notes - Solow–Swan Model, Production Function, Economic Growth
Document Summary
The earlier we implement innovative technology, the greater the effect on growth: differences in economic growth can change world income distribution. If poorer countries can grow faster, they can be lifted out of poverty: richer societies can afford social security nets to take care of the vulnerable. Differences in innovation, regulation, governance, policy, etc. Must identify barriers to growth to understand why some regions grow more slowly: policies can create barriers to growth. Growth: growth miracle: episodes where growth in country far exceeds world average over extended period of time. Result: country moves up world income distribution. Japan in 1990s, china, poland/hungary post soviet breakup (because of opening up: growth disaster: episode where growth in country falls short of world average for extended borders) period of time. Result: country moves down world income distribution. African countries and syria after war, venezuela (because of political pressures), Models: models start from stylized facts based on 20th century data from developed economies.
