Income Disparity among Countries and Endogenous Growth

Income Disparity among Countries and Endogenous Growth -...

Info icon This preview shows pages 1–2. Sign up to view the full content.

Income Disparity among Countries and Endogenous Growth: Convergence in the Solow Model Standards of living are said to be converging across countries if output per worker converges to the same level The Solow growth model predicts that the rich and poor countries will converge to the same standards of living if they are identical with respect to Total factor productivities Labour force growth rates, and Savings rates Long Run Growth in the Solow Model Long-run growth in output per worker in the Solow model comes from growth in TFP which is not explained by the model. TFP growth is not explained by the model. Therefore, the Solow growth model is an exogenous growth model. Endogenous Growth Human Capital and Growth Endogenous growth models explain productivity growth and hence the growth rate of output per worker endogenously Human capital is the accumulated stock of skills and education A key feature of the endogenous growth model is the absence
Image of page 1

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

Image of page 2
This is the end of the preview. Sign up to access the rest of the document.
  • Spring '11
  • Leatandre
  • Macroeconomics, Solow model, Endogenous growth theory, Exogenous growth model, equilibrium growth rate

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern