Convergence_TurkeyUSA

# Convergence_TurkeyUSA - 1 : 2007 and 2002 between capita...

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Click to edit Master subtitle style 3/7/11 Econ 205: Principles of Macroeconomics Osman F. Abbasoglu November 25, 2010 Per capita GDP Convergence: Turkey and United States

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3/7/11 Historical Trends 0 2 4 6 8 10 12 0 2 4 6 8 10 12 Years GDP per capita
3/7/11 Methodology ) 1 log( log log : sides both of logarithms Taking time. represents and country, represents where ) 1 ( . and by denoted be will rates growth the And ly. respective States United the and Turkey of GDP capita per the denote to Use 0 , , 0 , , i i t i t i i t i US TR US TR g t y y t i g y y g g y and y + + = + =

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3/7/11 e. convergenc for take it will shorter the rates, growth in difference bigger the the and e, convergenc for take will it longer the capita, per GDP in gap bigger the the So ) 1 log( ) 1 log( log log : get we , of value for the Solving ) 1 log( log ) 1 log( log : slide previous the from equation the ng Substituti other. each to equal be will U.S. the and Turkey of incomes capita per i.e. , such that find want to We 0 , 0 , 0 , 0 , , , US TR TR US US US TR TR t US t TR g g y y t t g t y g t y y y t + - + - = + + = + + =
3/7/11 Using data to find time for %. 89 . 1 and % 16 . 5 yields which

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Unformatted text preview: 1 : 2007 and 2002 between capita per GDP real of rate growth average the as rate growth the calculated I 91 . 42866 \$ , 86 . 7737 \$ : get we Tables Penn World Using e. convergenc of time the find to U.S. the and Turkey for numbers in the plug want to we Now 5 1 2002 , 2007 , 2007 , 2007 , = =- = = = US TR i i i US TR g g y y g y y 3/7/11 2062. in or years, 55 about in occur will e convergenc he say that t can we So 74 . 54 ) 0081 . 0218 . ( ) 88 . 3 63 . 4 ( : e congergenc for needed time the find can we before, derived e equation w the and numbers these Using =--= t 3/7/11 GDP per capita projection 2 4 6 8 10 12 2 4 6 8 10 12 Years GDP per capita...
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## This note was uploaded on 03/06/2011 for the course ECON 350 taught by Professor Kamrany during the Spring '09 term at USC.

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Convergence_TurkeyUSA - 1 : 2007 and 2002 between capita...

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