This preview shows page 1. Sign up to view the full content.
Unformatted text preview: starts to think about them, it is hard to think about anything else.-Robert E. Lucas Aggregate Production unction: Y t = A t K t H t L ( 1 ) t where A t is the technology, K t the capital, H t the human capital and L t the labour at time period t . The aggregate production function suggests that differences in income across countries are due to: capital stocks includes public capital human capital stocks difference in technology Almost impossible to measure stocks accurately, but national accounts try to do so. Development Economics, LSE Summer School 2007 2...
View Full Document
- Spring '10