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Part IIB. Paper 2

Readings and Refs. Texts:*Jones chs. 3

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Part IIB. Paper 2

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    2. Readings and Refs

    6. Neo-Classical Growth Model: Reality Check

    8. Human Capital

    10. MRW Approach

    11. MRW Approach

    12. Unique Steady-State

    13. Some Implications Higher saving rate in physical capital not only increases k, but also human capital, h. Same applies for higher investment in human capital. The relative contribution of physical and human capital in output depends on the share of each factor.

    17. MRW = augmented Solow model

    20. Speed of Convergence

    22. Review of MRW specification

    23. Some Concluding Remarks Solow model: Simple and tractable framework, which allows us to discuss capital accumulation and the implications of technological progress. It shows us that if there is no technological progress there will be no sustained growth even with human capital. Generate per capita output growth, but only exogenously: technological progress is a black box. Capital accumulation: determined by the saving rate, the depreciation rate and the rate of population growth. All are exogenous. Need to dig deeper and understand what lies in these black boxes.

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