POSC 182 Lecture 3 2010

POSC 182 Lecture 3 2010 - POSC 182: Politics and Economic...

Info iconThis preview shows pages 1–7. Sign up to view the full content.

View Full Document Right Arrow Icon
POSC 182: Politics and Economic Policy Unit 1: Institutions Lecture 2: The Underlying Causes of Growth January 8, 2010
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Chinese Income Distribution Mean Income in 1970 Mean Income in 2000 Width ~ Degree of Inequality • Mean Income has Increased • Poverty (<$1/day) has Decreased • Inequality has Increased Source: Sala-i-Martin (2006) Income Distribution In 1970 Income Distribution In 2000
Background image of page 2
Income Per Capita Adjusted for Inflation Incomes are generally increasing But, there is divergence Source: Angus Maddison (1995)
Background image of page 3

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
The Puzzle of Divergence Solow Model There is a diminishing marginal return to capital Convergence: Poor countries should grow faster than rich countries because of diminishing marginal return to capital Output / Income (Y) Capital (K) ∆K ∆K A B Diminishing Marginal Return to Capital: A > B K1 K2 Y1 Y2
Background image of page 4
Innovation as a Source of Growth
Background image of page 5

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Different Types of Growth Growth from Factor Accumulation Accumulation of capital and human capital (total labor and skills) as Solow predicts
Background image of page 6
Image of page 7
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 13

POSC 182 Lecture 3 2010 - POSC 182: Politics and Economic...

This preview shows document pages 1 - 7. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online