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Week 4 - Notes - -According to Solow Rich countries grow...

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Week 4 – Notes - Income in Japan is convergent to the income of the US - Bangladesh is divergent - African countries are diverging - You cannot assume technology is constant - A = given/constant technology - No export/imports in a closed economy - The more you add capital you move to the right, increase in output - Growing towards K (steady state) - Each country has a different k*
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Unformatted text preview: -According to Solow, Rich countries grow slower than poor countries-Poor countries don’t actually have a higher growth rate (only evidence of divergence)-Convergence in the US states-Solow was way too simple-Countries closer to the equator tend to be poorer, vice versa; Singapore close to the equator but doing well...
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