ECON 4020 Spring 2008 Midterm exam 1
Name _
This is a closed book exam. Exam is out of 100 points. Answer all the questions. Show all your calculations. Explain your answers in the essay type questions. You have 50 minutes to finish this exam.
Acad
Lecture 12: Solow Model
Nicolas Roys
University of Wisconsin Madison
Econ 302 - Spring 2015
Topics of todays class
Last Lecture:
I
Malthusian Model
Today:
I
Solow Model
The Solow Growth Model
This is a key model which is the basis for the modern theory of
Lecture 11: Malthusian Model of Economic
Growth
Nicolas Roys
University of Wisconsin Madison
Econ 302 - Spring 2015
Topics of todays class
Last Lecture:
I
Introduction to Economic Growth
Today:
I
Malthusian Model of Economic Growth
Economic Growth over th
Lecture 10: Introduction to Economic Growth
Nicolas Roys
University of Wisconsin Madison
Econ 302 - Spring 2015
Growth
In which country:
I
Life expectancy is less than 50 years
I
1 out of 10 infants dies before the age of one
I
More than 90 percent of hou
Malthusian Model of Economic Growth: an Example
Consider the Malthusian model of Economic Growth with the following functional forms:
1
2
Y
=
zL 3 N 3
y
N0
N
=
zl 3
=
g(c)
=
c 2
1
1
Using y = c, it follows:
N0
N
N0
N
N0
N
1
=
c 2
1 12
zl 3
=
1
=
1
z 2 l
Additional Exercise on the Solow Growth Model
In period 1, Country A has a capital-labor ratio that is four times as big as that
of country B:pk1A = 4k2B = 4. Both countries have the same production function, f (k) = k and the same level of TFP z = 6. Cou
CHAPTER 12 NOTES FROM BOOK
12.1
Technological Progress and the Production Function
Dimensions of technological progress:
-It can lead to larger quantities of output for given quantities of capital and labor.
-It can lead to better products.
-It can lead t
The Economist- Why Nations Fail (2012)
Adjusted for purchasing power, the average American income is 50 times that of a typical Afghan and 100
times that of a Zimbabwean. Despite two centuries of economic growth, over a billion people remain in
dire pover
The Economist- Roots of Development (2002) Notes
Some economists say that good institutions that are conducive to growth: political stability, property
rights, legal systems, patterns of land tenure, and so on. Other economists instead put great weight on
Chapter 11 Notes Summary
The evolution of output is determined by two relations
1) The level of output depends on the amount of capital
2) Capital accumulation depends on the level of outputwhich determines savings and
investment
The steady state level of
Acemoglu (2012)
The last century has been the age of political rights. Never in our history have so many people taken part
in choosing their leaders and having a say in how their societies are governed.
The rights revolution is intertwined with diverse tr
Jones Romer (2010)
Jones and Romer identify four interesting endogenous variables - ideas, institutions, population, and
human capital - and focus on models that uncovered subtle interactions between these variables to
answer questions on growth and trade
Chapter 11 Notes from Book
Saving rate- The proportion of income that is saved
Would increasing the U.S savings rate lead to sustained higher U.S growth in the future? No.
An economys growth rate does not depend on its saving rate.
What it DOES effect tho
Chapter 10 Notes
Growthsteady increase in aggregate output over time.
In the long run, growth dominates.
10.1
Measuring the Standard of Living
We care about growth because we care about the standard of living.
Output per person = gdp divided by population
ECON 4020 Spring 2008 Midterm exam 2
Name _
This is a closed book exam. Exam is out of 100 points. Answer all the questions. Show all your calculations. Explain your answers in the essay type questions. You have 50 minutes to finish this exam. Acad
ECON 4020 Spring 2008 Midterm exam 1
Name _
This is a closed book exam. Exam is out of 100 points. Answer all the questions. Show all your calculations. Explain your answers in the essay type questions. You have 50 minutes to finish this exam.
Acad
ECON 4020 Spring 2008 Midterm exam 2
Name _
This is a closed book exam. Exam is out of 100 points. Answer all the questions. Show all your calculations. Explain your answers in the essay type questions. You have 50 minutes to finish this exam. Acad
Lecture 14: Endogenous Growth, Growth
Accounting and Institutions
Nicolas Roys
University of Wisconsin Madison
Econ 302 - Spring 2015
Topics of todays class
I
Endogenous Growth
I
Growth Accounting
I
Institutions
Endogenous Growth
I
Solow:
I
I
I
capital ac