Lecture 3 10

Lecture 3 10 - 4. Wages (w) grow at a constant rate 5....

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Stylized Facts of Economic Growth International data (averaging over long period of time) suggest the followings : 1. Income per unit capital (Y/K) does not change. 2. Income per capita (Y/N) and Capital per capita (K/N) grow at constant rates. 3. Rental price of capital (r) is constant.
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Unformatted text preview: 4. Wages (w) grow at a constant rate 5. Rates of growth and levels of income vary substantially across countries (non-convergence). A good economic model should be able to explain these “facts of growth”, also known as Kaldor’s Facts....
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This note was uploaded on 04/03/2011 for the course ECON 2021 taught by Professor Mok during the Spring '11 term at HKU.

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