Topic # 8: Labour Market Integration and Migration: Who chooses to migrate, and why does it
Note: Borjas self-selection model
US( new world, but not western europe) is a relatively equal income distribution nation in 19th
Topic # 5: Technological Diffusion: Should nations develop new technologies, or adapt existing
Endogenous vs. Exogenous technological change: Physical and Organizational Technology Fosters
The process of technological change:
Objective 1: Endogenous vs. Exogenous technological change: Physical and Organizational
Technology Fosters Endogenous Growth
Inventions - New Ideas can be of different sorts
1) Macro inventions (General purpose technologies) true discontinuities (random)
Topic # 6: Railways as an IT discontinuity: What impact did the adoption and development of a
rail network have on the diffusion of MEG?
Railways are "special"
As for the traditional view, railways are Necessary and sufficient for MEG, Trains
Topic # 7: Trade and trade policy: Did openness to trade matter? Is free
trade a good policy choice?
Openness to trade: trade/GDP and growth in GDP are identical
Counter example: US (story, no need to trade)
US domestic market is strong
Migration=>impact of L Mkt integration
Becker's Model Applied to Migration
Beckers rational decision making model
Choose y* years in New world to maximize
Income( or saving)0> cost to move0
Note: T= ynw+yow
Human Capital Fosters Endogenous Growth
1. What is human capital?
First, technical elites. They identify and act on technological gaps. For example, engineers,
chemists, mechanists Identify others using technology and entrepreneurs adopt technology
o Midterm 20% February 9th (in class)
o Term Paper 35% March 23rd (by 4pm)
10-12-15 pages, whatever. A good paper.
o Final Exam 45%
Not cumulative, only second half of class
TA: [email protected] <- not much point cause he does