Econ 114- Lecture 6

Econ 114 Lecture 6 - Econ 114 Lecture 6 Review Proximate causes of income differences Factor Accumulation Capital(Solow Model Labor(Malthus and

Info iconThis preview shows pages 1–6. Sign up to view the full content.

View Full Document Right Arrow Icon
Econ 114 Lecture 6 4/13/2011
Background image of page 1

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

View Full DocumentRight Arrow Icon
Review Proximate causes of income differences Factor Accumulation Capital (Solow Model) Labor (Malthus and Solow) Factor Productivity Inferior technologies Lower efficiency
Background image of page 2
Steady State in Solow So capital declines So capital accumulates investment > depriciation
Background image of page 3

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

View Full DocumentRight Arrow Icon
Summary (Solow) Income differs because capital differs Capital differs because savings differs part of the difference is transitional poor countries should grow faster initially Until they converge to the income of rich countries But there is no growth of income in the steady state And the model does not fully explain current differences (many countries save more than
Background image of page 4
A very controversial aspect of economic development good thing (more hands to work) Bad thing (more mouths to feed) Why Controversial? Should we limit population growth? Abortion? Contraception? Should we allow gender
Background image of page 5

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

View Full DocumentRight Arrow Icon
Image of page 6
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 11/03/2011 for the course ECON 114 taught by Professor Cindybenelli during the Spring '08 term at UCSB.

Page1 / 23

Econ 114 Lecture 6 - Econ 114 Lecture 6 Review Proximate causes of income differences Factor Accumulation Capital(Solow Model Labor(Malthus and

This preview shows document pages 1 - 6. Sign up to view the full document.

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