Exam 5: Conditional Convergence and Long-Run Economic Growth

Convergence can be seen in the data of all countries together if one holds constant:

In the Solow growth model the growth rate of capital per worker is positively related to the initial level of capital per worker.

If sA > s + n in the model with constant average product of capita, the long run growth rate is:

In endogenous growth models, technological progress comes from:

With steady state growth:

A growth model with continuing output per worker growth in the long run is:

To encourage firms to engage in research and development (R&D), governments grant temporary monopolies in the production of the word or symbol based goods like books and computer code that result from R&D called:

An example of non-rival good is:

In the Solow growth model with technological progress in the steady state:

The Solow growth model with technological progress has continuous output per worker growth in the steady state.

With steady state growth:

An example of a non-rival good is:

With steady state growth:

What variables must be held constant to find convergence in the data on all countries.

With steady state growth:

With steady state growth:

In the Solow growth model transition, the growth rate of output per worker is positively related to:

Conditional convergence is the tendency of economies to converge:

The key equation for conditional convergence for capital per worker is:

With steady state growth: