Lecture 4 28

Lecture 4 28 - 3. Rental price of capital (r) is constant....

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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.
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Unformatted text preview: 3. Rental price of capital (r) is constant. 4. Wages (w) grow at a constant rate 5. Rates of growth and levels of income vary substantially across countries (non-convergence)....
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