Cheat sheet

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Course Code
ECON 4070

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PPowerPBased on prices of a standardized basket of goodsservicesrespect to current tech partly due to repeating tasks As tech becomes more advanced Ratio ScaleEqual proportion variable on a graphdifficulty raises in major breakthroughsLinear Scale Equal differences on vertical correspond to equal differences Baumols cost disease2 sector economy Sector that lags behind in growth has Rule of 72k Estimating time takes growth double 72g greater weight in economy thus dragging down overallLow growth sector has higher Correlation coefficient between 1 1 positive or negative relationcostsCrosssectional data data based on different unitsBaulmol paperIndustrialized nations that were poor in 19th century grew at a faster Marginal ProductAdditional output produced from 1 unitrate then other A key predication to steady state of Solow model Convergence toward DiminishingDiminishes MP as Q increasessteady stateCapitals share IDenoted by Alpha MPKKY Labor 1ABrad de long CritiqueThe countries he selected had already caught up with each Growth rateNewIIother and were hand selected to prove resultsEndogenous variable Determined inside model QPEasterly Exogenous variableCosts outside flour butterFinancing GapOutput increases in proportion to machines or working capital and Capital dilutionnegative effect of pop growth on capworkerhence increases machines investment which leads to growth Many places have little Demographic transitionCountries pop characterizes are transformed as invest and require aidExamined 88 countries over 30 yrs testing if aid leads to developincrease in invest Second if the increase leads toratio 17 increase 8 increase Mortality transitionPattern change in deathExamine 138 invest over 4 yr then g over 4 yrs 10 countries showed results Only 4 thFertility transition Life declined in midlate 19 centurypassed bothtestsLife expectancy at birthaverage yrs newborn expected to liveMyth unwanted birthsArgues even most uninformed person knows difference in TFR of children woman have if lived through child bearing years 2039cost of child and condoms Price diff is far too much for markets not to supply Net rate reprodaughters that each girl born expected to give birth to assuming contraceptives Most births are desiredMRTFR TFRLE of womanMR of childSexRelation of pop and econ growthfound no relation Unsurprising because no thrdReplacement fertilitylevel of fertility consistent with constant pop LRrelationship in history 20 cent Larger variation in pop 3pop slowecon growth Tempo effecteffect of rise in average age of child birth has on TFRslowed Uses quality vs quantity argument development best contraceptive HC Demographic momentumrate of births rise asof reproductive womenbuilds on it self leading to rents having fewer childrenstComposition effectpop redistribution reducing average growth rate of IEducationgrowth1 Found norelation Sub Saharan had negative while E ndCollege premiumratio of college workers to HS workersAsian had positive 2 assessed effect of 1 increase in average yrs of school and rdReturn to educationwages worker receives with additional yr schoolfound none3 Studied variations of growth and income to find school explained 6 thDevelopmental accountingbreaking down differences in I accounted by dif in 4 noted in rapid growing countries younger workers should earn more Expedu A and dif in factor accumulationFound that rapid growtheduGrowth accountingTechnique to derive g of A Developed Economies23 to payments of HC 13 to raw labor Developinggoes to Rivalonly used by 1 person Nonrivalused by anyHC andto raw laborCreative destructionprofits of 1 firms innovation comeothers expense70s slowcomputersMajor change in tech leads to restructure that takes time until Tacit knowledgeknowledge gains by experience Lbulbs JapanproductivityEmbodied technological progresslink of tech to specific capitalAghionHowitt Freemarket slow growth Problem with deal
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