Econ 4450(2010) - Econ 4450(2010 Not e 3 1 The globalized economic environment Some background of physiology is the pre-requisite for medicine The

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Note 3 Econ 4450 (2010) 1
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The globalized economic environment Some background of physiology is the pre-requisite for medicine. The same can be said about the world economy for industrial policy. Chapter 1 of Wan (2004) Article 13 of Wan (2006). 2
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This is a period in which America is the indisputable technological leader with a per capital real income a(t) which is both higher than almost all countries and growing at more or less a constant annual rate: k 3% 3
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For any other economies, say, i, denote its per capita real income as a(t)y(t; i), where y(t; i) is real per capita GDP of economy i relative to the US, then there is a quasi-concave function: F[y(t, i), 1 - y(t, i); θ (i)] such that: (4.1) d log y(t, i)/dt = F[y(t, i), 1 - y(t, i); θ (i)] – k, so that the growth rate of the per capita real GDP of country i is: (4.2) d log [a y(t, i)]/dt = d log a/dt + d log y(t, i)/dt = k +{F[y(t, i), 1 - y(t, i); θ (i)] – k} = F[y(t, i), 1 - y(t, i); θ (i). 4
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This note was uploaded on 04/29/2010 for the course ECON 4450 taught by Professor Wan during the Spring '09 term at Cornell University (Engineering School).

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Econ 4450(2010) - Econ 4450(2010 Not e 3 1 The globalized economic environment Some background of physiology is the pre-requisite for medicine The

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