1、Macroeconomics - Barro Chapter 31C h a p t e r 3Introduction to Economic GrowthMacroeconomics - Barro Chapter 32Economic Growth and Standard of LivingMacroeconomics - Barro Chapter 33World Distribution of Real GDP World Distribution of Per Capita e in 2000 World Distribution of Per Capita e in 1960

2、Growth Rate in Per cpita e 1960-2000. e Inequality.Macroeconomics - Barro Chapter 34Macroeconomics - Barro Chapter 35Macroeconomics - Barro Chapter 36Macroeconomics - Barro Chapter 37Macroeconomics - Barro Chapter 38Macroeconomics - Barro Chapter 39Long Term Economic Growth in OECD CountriesMacroeco

3、nomics - Barro Chapter 310Productivity Slowdown The decline in the growth rate of real GDP per person from 3.1% per year for 19601980 to 1.8% per year for 19802000 is sometimes called the productivity slowdown.Macroeconomics - Barro Chapter 311Growth Questions What factors caused some countries to g

4、row fast and others to grow slow over periods such as 1960 to 2000? In particular, why did the East Asian countries do so much better than the sub-Saharan African countries? How did countries such as the United States and other OECD members sustain growth rates of real GDP per person of around 2% pe

5、r year for a century or more? What can policymakers do to increase growth rates of real GDP per person?Macroeconomics - Barro Chapter 312Production FunctionY = A F(K, L)A Technology LevelK Capitol Stock machines and buildings used by business.L Labor Force number of workersMacroeconomics - Barro Cha

6、pter 313Macroeconomics - Barro Chapter 314Macroeconomics - Barro Chapter 315Production Functions MPL Marginal Product of Labor Diminishing Marginal Product of labor MPK Marginal Product of Capital Diminishing Marginal Product of CapitalMacroeconomics - Barro Chapter 316Constant Returns to Scale Cons

7、tant Returns to Scale Double K and L and Y will also double Therefore, if we multiply K and L by the quantity 1/L we also multiply Y by 1/L to get Y/ L = A F( K / L, L/ L)Macroeconomics - Barro Chapter 317Per Worker Production Function y=f(k) y output per worker k capital per workerMacroeconomics -

8、Barro Chapter 318Macroeconomics - Barro Chapter 319Contributions to GDP Growth Y/Y = A/ A + (K/K) + (L/L) The growth rate of real GDP, Y/Y, equals the growth rate of technology, A/A, plus the contributions from the growth of capital, (K/K), and labor, (L/L).Macroeconomics - Barro Chapter 320Contribu

9、tions to GDP Growth Y/Y = A/A + (K/K) + (L/L) 0 1 0 0). L/L = nMacroeconomics - Barro Chapter 334Solow Growth ModelMacroeconomics - Barro Chapter 335Solow Growth Model k/k = K/K L/L k/k = s (Y/ K) s nMacroeconomics - Barro Chapter 336Solow Growth Model Y/K =(Y/L) / (K/L) Y/K = y/kMacroeconomics - Ba

10、rro Chapter 337Solow Growth Model k/k = s(y/k) s n y/y = (k/k) y/y = s( y/k) s nMacroeconomics - Barro Chapter 338Solow Growth ModelMacroeconomics - Barro Chapter 339Solow Growth Model k(0) = K(0)/ L(0) y= A f( k) y(0) = Y(0)/L(0) y(0) = A f k(0) Macroeconomics - Barro Chapter 340Solow Growth ModelMacroeconomics - Barro Chapter 341Solow Growth Model steady state. When k = k , k/k equals zero. k/k = 0, k stays fixed at the value k . y* = f(k*)Macroeconomics - Barro Chapter 342Solow Growth ModelMacroeconomics - Barro Chapter 343Solo