A 130 - A 130-Year Long Argument Against The Solow Growth...

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A 130-Year Long Argument Against The Solow Growth Model d We have already presented strong quantitative arguments against the Solow growth model, which presumes that the rate of change in real GDP per capita must approach some constant level. In developed countries, the annual increments of real GDP per capita have been rather oscillating around constant level since 1955. We use the estimates of real GDP per capita published by the Conference Board 's total economy database. Since the late 1990s this database has been developed and maintained in conjunction with the Groningen Growth and Development Centre (University of Groningen, The Netherlands). As of the summer of 2007 the database has been transferred from the University of Groningen to The Conference Board and is maintained there. The GGDC also provides historical estimates of real GDP developed by Angus Maddison. It is instructive to use these historical estimates in order to reject the Solow model by empirical data. Under our empirical framework [ 1 , 2 , 3 ], real GDP per capita in developed countries grows as a linear function of time, we call it inertial growth, when population pyramid does not change
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This note was uploaded on 03/08/2012 for the course ECON 2400 taught by Professor Tasso during the Spring '09 term at York University.

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A 130 - A 130-Year Long Argument Against The Solow Growth...

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