Chap 6 - What is the difference between exogenous growth...

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What is the difference between exogenous growth and endogenous growth? In an exogenous growth model the growth is caused in the model by forces that are not explained by the model itself and in the endogenous the economic mechanism in the model determines the rate of economic growth. What are the seven economic growth facts? Before the industrial revolution in about 1800, standards of living differed little over time and across countries. Since the industrial revolution, per capita income growth has been sustained in the richest countries There is a positive correlation between the rate of investment and real income per capita across countries There is a negative correlation between the population growth rate and real income per capita across countries Differences in per capita incomes increased dramatically among countries of the world between 1800 and 1950, with the gap widening between the countries of Western Europe, the US, Canada, Australia, and New Zealand, as a group, and the rest of the world There is essentially no correlation across countries between the level of output per capita in 1960 and the average rate of growth in output per capita for the years 1960-2000 Richer countries are much more alike in terms of rates of growth of real per capita income than are poor countries What are the characteristics of a steady state in the Solow Growth Model? A steady state equilibrium has the characteristic that the current capital per worker k = k*. Future capital per worker k’ = k*and the economy has k* units of capital per worker forever after. The
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Chap 6 - What is the difference between exogenous growth...

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