What is the equation of motion for capital?

K(t) = sY(t) - δK(t).

What did Malthus argue about the possibilities for long-run economic growth?

That environmental considerations are critical and that fixed resources may eventually deplete, leading to growth failure.

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p.9

Growth Accounting

K(t) = sY(t) - δK(t).

p.7

Environmental Limitations

That environmental considerations are critical and that fixed resources may eventually deplete, leading to growth failure.

p.7

Resource and Land Limitations

They may become binding constraints on our ability to produce.

p.13

Pollution and Economic Growth

It reduces properly measured output.

p.5

Empirical Applications

It weakened the case for convergence considerably.

p.13

Optimal Pollution Tax

Auction off a quantity of tradable permits that allow the socially optimal level of pollution.

p.14

Climate Change

2 to 3 percent.

p.16

Solow Residual

It is the same as it was before the new workers appeared. This is because the economy has adjusted to the new number of workers and reached a balanced growth path.

p.16

Growth Accounting

The immediate effect is an increase in consumption. It takes some time for consumption to return to what it would have been without the rise in investment.

p.9

Growth Accounting

g bgp Y.

p.8

Growth Accounting

Cobb Douglas production.

p.8

Resource and Land Limitations

The amount of land on earth is fixed, and resource use must eventually decline.

p.5

Empirical Applications

Argentina, Chile, East Germany, Ireland, New Zealand, Portugal, and Spain.

p.15

Solow Residual

It affects them in a certain way.

p.12

Growth Accounting

It implies a falling growth drag.

p.2

Growth Accounting

While there is evidence of mismeasurement, there is no evidence that it is greater in recent years than before.

p.4

Empirical Applications

Almost perfect convergence.

p.10

Solow Residual

gK equals s(Y/K) - δ.

p.3

Convergence

The idea that poor countries tend to grow faster than rich countries.

p.13

Optimal Pollution Tax

Because those who pollute do not bear the costs of their pollution.

p.13

Optimal Pollution Tax

The level at which private and social costs are in line.

p.2

Growth Accounting

Many issues, including the rapid growth of newly industrializing countries of East Asia and productivity growth in the United States.

p.14

Climate Change

Much more harmful than doing nothing.

p.16

Solow Residual

It rises. This is because the same amount of capital is now being used by more workers, leading to increased output per unit of effective labor.

p.16

Growth Accounting

Consumption rises by approximately 2.22% relative to what it would have been without the rise in investment.

p.9

Growth Accounting

The production function.

p.6

Growth Accounting

The true value of log income per capita in 1870.

p.6

Empirical Applications

He argues that even moderate measurement error has a substantial impact on the results.

p.6

Empirical Applications

It eliminates most or all of the remainder of Baumol’s estimate of convergence.

p.12

Solow Residual

Cobb Douglas production ensures a given percentage change in A always produces the same percentage change in output.

p.13

Optimal Pollution Tax

Estimate the dollar value of the negative externality and tax pollution by this amount.

p.2

Growth Accounting

Fraction 1 - α K (k*)

p.14

Climate Change

About 0.03 percentage points.

p.14

Optimal Pollution Tax

$0.20.

p.16

Growth Accounting

The saving rate needed to yield the golden-rule capital stock is the rate that ensures the economy reaches the optimal level of capital per effective worker.

p.16

Solow Residual

The total output increases as the population growth falls, leading to a higher path of output in the economy.

p.8

Solow Residual

A model used to analyze economic growth over time.

p.6

Solow Residual

ln[(Y/N)i,1979] - ln[(Y/N)i,1870]* = a + b ln[(Y/N)i,1870]* + εi

p.1

Growth Accounting

Into the contribution of growth of capital per worker and the Solow residual.

p.1

Growth Accounting

The immediate determinants of growth, such as factor accumulation and improvements in the quality of inputs.

p.10

Solow Residual

gK is falling as well.

p.15

Growth Accounting

It drops to 0 at time t1, rises gradually from 0 to a from time t1 to time t2, and is constant and equal to a after time t2.

p.5

Empirical Applications

Estimates of real income per capita in 1870 are imprecise, creating bias toward finding convergence.

p.12

Growth Accounting

It indicates that the elasticity of substitution between these inputs and the others is greater than 1.

p.2

Growth Accounting

They can replicate the success of NICs by promoting accumulation of physical and human capital and greater use of resources.

p.14

Tail Risks and Tipping Points

The small chance that outcomes will be vastly worse than the point estimates.

p.14

Discount Rate and Climate Change

The debate between Nordhaus and Stern.

p.16

Solow Residual

They all increase. As the rate of population growth falls, the economy adjusts to a new balanced growth path with higher values for these variables.

p.16

Growth Accounting

Output eventually rises by approximately 6.67% relative to what it would have been without the rise in investment.

p.9

Solow Residual

That K and Y each grow at a constant rate.

p.5

Empirical Applications

1870–1979.

p.5

Empirical Applications

It may lead to poorer countries appearing to grow faster than richer ones.

p.5

Empirical Applications

Using a rule not based on the variable being explained, which is growth over the period 1870–1979.

p.7

Empirical Applications

Owners do not want to sell their resources cheaply today.

p.12

Growth Accounting

It rises over time.

p.14

Climate Change

3 to 4 degrees centigrade.

p.16

Solow Residual

It raises y* by approximately 0.67%. This is calculated using the elasticity of output per unit of effective labor with respect to the rate of population growth.

p.1

Solow Residual

The contribution of technological progress and all sources of growth other than the contribution of capital accumulation via its private return.

p.3

Empirical Applications

Dispersion in the value of the marginal products of labor and capital.

p.4

Empirical Applications

Countries with long data series are generally those that are the most industrialized today.

p.7

Growth Accounting

Markets provide valuable signals concerning how the goods should be used.

p.10

Growth Accounting

(1 - α - β - γ)(n + g) + (1 - α)δ - βb is positive.

p.11

Empirical Applications

By using income data to estimate the importance of resources and land in production.

p.2

Growth Accounting

To look at the role of computers and other types of information technology in high productivity growth and the failure of the growth rebound to spread broadly to other sectors.

p.16

Solow Residual

Yes, there is a further change. It rises because the economy adjusts to the new number of workers, leading to increased output per unit of effective labor.

p.16

Growth Accounting

w denotes the marginal product of labor, and r denotes the difference between the marginal product of capital and the depreciation rate.

p.1

Growth Accounting

Y(t) = F(K(t), A(t)L(t))

p.4

Growth Accounting

That growth is uncorrelated with initial income and there is no convergence.

p.3

Empirical Applications

Overall productivity in manufacturing in China and India would rise by roughly 50 percent.

p.15

Growth Accounting

The time derivative of its log.

p.10

Resource and Land Limitations

The declining quantities of resources and land per worker.

p.12

Growth Accounting

It falls over time.

p.12

Growth Accounting

It implies that there are often large possibilities for substitution among inputs.

p.11

Resource and Land Limitations

The stock of land is fixed, and resource use must eventually fall, posing a potential constraint on our ability to produce.

p.16

Growth Accounting

The golden-rule value of k is the level of capital per effective worker that maximizes consumption in the steady state.

p.4

Solow Residual

A model used to analyze economic growth over time.

p.8

Optimal Pollution Tax

Because firms can pollute without compensating the people they harm, leading to externalities.

p.13

Resource and Land Limitations

Microfilm, videotape, DVDs, hard drives, and more.

p.13

Resource and Land Limitations

By moving to means of information storage that use those inputs less intensively.

p.10

Growth Accounting

It can be either positive or negative.

p.3

Convergence

Predictions from the Solow model, lower rate of return on capital in countries with more capital per worker, and lags in the diffusion of knowledge.

p.11

Resource and Land Limitations

The difference between growth in a hypothetical case with no limitations and growth in the case of resource and land limitations.

p.11

Empirical Applications

0.0024, about a quarter of a percentage point per year.

p.4

Growth Accounting

Higher initial income on average lowers subsequent growth one-for-one.

p.7

Solow Residual

Natural resources, pollution, and other environmental considerations.

p.15

Climate Change

Likely to be no more than moderate.

p.15

Optimal Pollution Tax

Roughly 0.04 percentage points.

p.6

Empirical Applications

There is little evidence of convergence.

p.12

Growth Accounting

1.

p.2

Growth Accounting

The growth coming entirely from growth in A.

p.2

Growth Accounting

Rising investment, increasing labor force participation, and improving labor quality.

p.14

Optimal Pollution Tax

About $20 per ton.

p.14

Discount Rate and Climate Change

The appropriate discount rate.

p.16

Growth Accounting

k* = (s / (n + g + δ))^(1 / (1 - α)), y* = k*^α, c* = (1 - s) * y*.

p.8

Environmental Limitations

It allows the use of the good's price to obtain evidence about its importance in production.

p.3

Convergence

Poor countries catch up to rich ones as differences in output per worker arise from countries being at different points relative to their balanced growth paths.

p.10

Resource and Land Limitations

They can cause output per worker to eventually be falling, but they need not.

p.11

Resource and Land Limitations

Resources’ share (β), land’s share (γ), the rate that resource use is falling (b), the rate of population growth (n), and capital’s share (α).

p.11

Environmental Limitations

It is not large, and there would have to be very large changes for resource and land limitations to cause income per worker to start falling.

p.2

Growth Accounting

By applying growth-accounting techniques at the firm level to study the importance of misallocation.

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