CH7%3a8 ECO 3203 - The standard of living Compounding The...

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Chapters 7-8 Outline Chapter 8 pages 221-238 only This section of the course focuses on the economy over the very long run: performance across many decades. Facts about the growth record Since 1890, RGDP has increased by a factor of 39. Large increase in RGDP per capita since 1950 (3.1 times higher for U.S. and 10.2 times higher for Japan). Growth rates were lower from mid 1970’s to mid 1990’s. There has been a convergence of output per capita across developed countries.
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Unformatted text preview: The standard of living Compounding The rule of 70 Purchasing power parity Sustained economic growth • No growth up to 1500 • 1500-1700 0.1% per year • 1700-1820 0.2% per year • 1820-1950 1.5% per year • Malthus and the Industrial Revolution The per worker production function • Growth in labor • Growth in capital (capital accumulation) • Technological advance Growth accounting formula The Solow Model (this is chapters 7 and 8 of the text)...
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This note was uploaded on 11/08/2011 for the course ECO 3203 taught by Professor Yang during the Fall '10 term at University of Central Florida.

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