K(t) = sY(t) - δK(t).
That environmental considerations are critical and that fixed resources may eventually deplete, leading to growth failure.
They may become binding constraints on our ability to produce.
It reduces properly measured output.
It weakened the case for convergence considerably.
Auction off a quantity of tradable permits that allow the socially optimal level of pollution.
2 to 3 percent.
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.
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.
g bgp Y.
Cobb Douglas production.
The amount of land on earth is fixed, and resource use must eventually decline.
Argentina, Chile, East Germany, Ireland, New Zealand, Portugal, and Spain.
It affects them in a certain way.
It implies a falling growth drag.
While there is evidence of mismeasurement, there is no evidence that it is greater in recent years than before.
Almost perfect convergence.
gK equals s(Y/K) - δ.
The idea that poor countries tend to grow faster than rich countries.
Because those who pollute do not bear the costs of their pollution.
The level at which private and social costs are in line.
Many issues, including the rapid growth of newly industrializing countries of East Asia and productivity growth in the United States.
Much more harmful than doing nothing.
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.
Consumption rises by approximately 2.22% relative to what it would have been without the rise in investment.
The production function.
The true value of log income per capita in 1870.
He argues that even moderate measurement error has a substantial impact on the results.
It eliminates most or all of the remainder of Baumol’s estimate of convergence.
Cobb Douglas production ensures a given percentage change in A always produces the same percentage change in output.
Estimate the dollar value of the negative externality and tax pollution by this amount.
Fraction 1 - α K (k*)
About 0.03 percentage points.
$0.20.
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.
The total output increases as the population growth falls, leading to a higher path of output in the economy.
A model used to analyze economic growth over time.
ln[(Y/N)i,1979] - ln[(Y/N)i,1870]* = a + b ln[(Y/N)i,1870]* + εi
Into the contribution of growth of capital per worker and the Solow residual.
The immediate determinants of growth, such as factor accumulation and improvements in the quality of inputs.
gK is falling as well.
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.
Estimates of real income per capita in 1870 are imprecise, creating bias toward finding convergence.
It indicates that the elasticity of substitution between these inputs and the others is greater than 1.
They can replicate the success of NICs by promoting accumulation of physical and human capital and greater use of resources.
The small chance that outcomes will be vastly worse than the point estimates.
The debate between Nordhaus and Stern.
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.
Output eventually rises by approximately 6.67% relative to what it would have been without the rise in investment.
That K and Y each grow at a constant rate.
1870–1979.
It may lead to poorer countries appearing to grow faster than richer ones.
Using a rule not based on the variable being explained, which is growth over the period 1870–1979.
Owners do not want to sell their resources cheaply today.
It rises over time.
3 to 4 degrees centigrade.
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.
The contribution of technological progress and all sources of growth other than the contribution of capital accumulation via its private return.
Dispersion in the value of the marginal products of labor and capital.
Countries with long data series are generally those that are the most industrialized today.
Markets provide valuable signals concerning how the goods should be used.
(1 - α - β - γ)(n + g) + (1 - α)δ - βb is positive.
By using income data to estimate the importance of resources and land in production.
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.
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.
w denotes the marginal product of labor, and r denotes the difference between the marginal product of capital and the depreciation rate.
Y(t) = F(K(t), A(t)L(t))
That growth is uncorrelated with initial income and there is no convergence.
Overall productivity in manufacturing in China and India would rise by roughly 50 percent.
The time derivative of its log.
The declining quantities of resources and land per worker.
It falls over time.
It implies that there are often large possibilities for substitution among inputs.
The stock of land is fixed, and resource use must eventually fall, posing a potential constraint on our ability to produce.
The golden-rule value of k is the level of capital per effective worker that maximizes consumption in the steady state.
A model used to analyze economic growth over time.
Because firms can pollute without compensating the people they harm, leading to externalities.
Microfilm, videotape, DVDs, hard drives, and more.
By moving to means of information storage that use those inputs less intensively.
It can be either positive or negative.
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.
The difference between growth in a hypothetical case with no limitations and growth in the case of resource and land limitations.
0.0024, about a quarter of a percentage point per year.
Higher initial income on average lowers subsequent growth one-for-one.
Natural resources, pollution, and other environmental considerations.
Likely to be no more than moderate.
Roughly 0.04 percentage points.
There is little evidence of convergence.
1.
The growth coming entirely from growth in A.
Rising investment, increasing labor force participation, and improving labor quality.
About $20 per ton.
The appropriate discount rate.
k* = (s / (n + g + δ))^(1 / (1 - α)), y* = k*^α, c* = (1 - s) * y*.
It allows the use of the good's price to obtain evidence about its importance in production.
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.
They can cause output per worker to eventually be falling, but they need not.
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).
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.
By applying growth-accounting techniques at the firm level to study the importance of misallocation.
