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  • Chapter 7

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    Shawn San
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    This chapter discusses accumulation effects and convergence, where poorer countries tend to catch up to richer countries in terms of income per capita. It focuses on different types of capital that contribute to growth, including physical capital like machinery, human capital like skills and education, and knowledge capital like technology. The chapter notes that while output initially rises with more capital, the marginal returns eventually diminish in the medium run as growth levels off.

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    This chapter discusses accumulation effects and convergence, where poorer countries tend to catch up to richer countries in terms of income per capita. It focuses on different types of capital that contribute to growth, including physical capital like machinery, human capital like skills and education, and knowledge capital like technology. The chapter notes that while output initially rises with more capital, the marginal returns eventually diminish in the medium run as growth levels off.

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    © All Rights Reserved
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    4 views2 pages

    Chapter 7

    Uploaded by

    Shawn San
    This chapter discusses accumulation effects and convergence, where poorer countries tend to catch up to richer countries in terms of income per capita. It focuses on different types of capital that contribute to growth, including physical capital like machinery, human capital like skills and education, and knowledge capital like technology. The chapter notes that while output initially rises with more capital, the marginal returns eventually diminish in the medium run as growth levels off.

    Copyright:

    © All Rights Reserved
    Download as PDF, TXT or read online from Scribd
    Flag for inappropriate content
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    Chapter 7

    February 27, 2024 6:08 PM

    - Relatively small chapter, not much info that isn't already on


    slides
    - Midterm focus chapters 1-7, remember diagrams and graphs
    - Previous chapters discussed allocation effects
    - Chapter 7 focuses on accumulation effects

    - Convergence: tendency for poor countries to catch up with rich


    nations in terms of income per capita

    - Growth means to increase in production every year


    - Per capita growth is an individuals increase in output
    - Physical capital: sewing machine
    - Human capital: skills that people have
    - Knowledge capital: technology

    - Under medium run growth, the rise in output eventually stop,


    diminishing marginal level of returns

    ECON 3807 Page 1


    ECON 3807 Page 2

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