ECON 314- Class Notes - Economic Development 2

ECON 314 Class - Economic Development 2(Preferred title Development Economics Class Notes Prof A Martens 0 Introduction.2 1 Basic Macroeconomic

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
Economic Development 2 (Preferred title: “Development Economics”) Class Notes Prof. A. Martens 0. Introduction ...................................................................................................................... 2 1. Basic Macroeconomic Accounting .................................................................................. 3 1.1. Computing GDP: production, income and expenditure approaches ......................... 3 1.2. National Accounting Matrix ..................................................................................... 4 1.3. The Accounts of the Real Sector of the Economy .................................................... 4 1.4. Balance of Payments Accounting ............................................................................. 5 1.5. Identities Linking the Real Sector and the Balance of Payments ............................. 7 1.6. Flow-of-Funds Accounts .......................................................................................... 8 1.7. Consolidated bank account: .................................................................................... 10 1.8. The Last Loop ......................................................................................................... 10 1.9. Some Macroeconomic indicators ............................................................................ 10 2. Economic Growth .......................................................................................................... 12 2.1. Neoclassical Production Function ........................................................................... 13 2.1.1. Marginal rate of technical substitution (MRTS) .............................................. 13 2.1.2. Elasticity of Technical Substitution ................................................................. 13 2.2. Solow Growth Model .............................................................................................. 14 2.2.1. Properties of the Cobb-Douglas Production Function .................................... 15 2.2.2. Solow Model Without Technical Progress - Equations .................................. 15 2.2.3. Solow Model with Residual ............................................................................. 17 2.2.4. Total Factor Productivity ................................................................................. 17 ................................................................................ 19 3.1. Comparative Advantage .......................................................................................... 19 3.2. Factor Endowment Theory (Hecksher-Olin Model) ............................................... 22 3.3. The Prebish-Singer Thesis ...................................................................................... 23 1
Background image of page 1

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

View Full DocumentRight Arrow Icon
.................................................................................................... Class 1 – January 5th 2010 Distinction between macro – and micro – development economics holds very little in reality. 0. Introduction
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 10/09/2010 for the course ECON 313 taught by Professor Iforget during the Spring '10 term at McGill.

Page1 / 31

ECON 314 Class - Economic Development 2(Preferred title Development Economics Class Notes Prof A Martens 0 Introduction.2 1 Basic Macroeconomic

This preview shows document pages 1 - 3. Sign up to view the full document.

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