Question: Question 1 Read the article Are poor countries catching up with rich countries? by Tyler Smith and the related paper by Paul Johnson and Chris

Question 1 Read the article "Are poor countries catching up with rich countries?" by Tyler Smith and the related paper by Paul Johnson and Chris Papageorgiou, and answer the following questions. What is the convergence hypothesis? What is the difference between conditional convergence and absolute convergence? Using a Solow growth model, can you explain the economic mech- anisms behind the convergence hypothesis? According to the article, does the real-world data show conditional or absolute convergence? What are the policy implications in light of the convergence pattern in the data?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock

The convergence hypothesis suggests that over time less developed or poor countries tend to catch up with more developed or richer countries in terms ... View full answer

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Economics Questions!

The Crazy Eddie fraud may appear smaller and gentler than the massive billion-dollar frauds exposed in recent times, such as Bernie Madoffs Ponzi scheme, frauds in the subprime mortgage market, the...

Googles ease of use and superior search results have propelled the search engine to its num- ber one status, ousting the early dominance of competitors such as WebCrawler and Infos- eek. Even later...

Planning is one of the most important management functions in any business. A front office managers first step in planning should involve determine the departments goals. Planning also includes...

Tabulate the function f(x) = sin x for x = 0.0(0.2)1.6. From this table estimate, by linear interpolation, the value of sin 1.23. Construct a table equivalent to Figure 2.102, and so estimate the...

Under what conditions would speculators sell a call option? What is the risk to speculators who sell put options?

Horowitz Company is planning to produce 2,000 units of product in 2012. Each unit requires 3 pounds of materials at $6 per pound and a half-hour of labor at $14 per hour. The overhead rate is 70% of...

Show that the variance of the lifetime of a k-out-of-n system of components, each of whose lifetimes is exponential with mean , is given by 2 n i=k 1 i 2

On September 30, 2016, Regal Bank loaned $92,000 to Kim Warner on a one-year, 6% note. Regals fiscal year ends on December 31. Requirements 1. Journalize all entries for Regal Bank related to the...

0 + recursive Write a Haskell function convertAllToint with the signature below. The result list should hold the integer values of the strings in the parameter list; note that the built-in read...

Clear Lake Nursing Home defines outputs as a patient day. Its present volume is 26,000 patient days. The average cost per day is $90,00. Present revenues and costs are presented below: Clear Lake...

When considering QI, some people believe that major opportunities for improvement can be realized by increasing clinician's skills and competence. However, others believe that more opportunities for...

] Scenario and Instructions Imagine that you just began working in the position and at the sport organization of your dreams. A good friend who worked there in the past has told you that although the...

Part A - Calculate a Reynolds number A jet of length L = 17.5 m is travelling at V = 410 m/s at an altitude of h = 7 km. At that altitude, the speed of sound is c = 312 m/s, the density of air is p =...

Choose any business of your choice and mention the Cost- benefit analysis briefly to conduct that business.

Calculate the earnings after tax and dividends under each of the following two financing options based on the document: stock financing: $20 million with 8 percent annual dividend.

Assume that the clamp shown has been tightened on wooden planks being glued together until P = 300 N. NOTE: This is a multi-part question. Once an answer is submitted, you will be unable to return to...

Required information [The following information applies to the questions displayed below.] Additional Information a. A $30,000 notes payable is retired at its $30,000 carrying (book) value in...

The unadjusted trial balance of Secretarial Services is as follows: SECRETARIAL SERVICES Unadjusted Trial Balance as at 31 December 2017 Account Debit Credit Cash at bank Office supplies Prepaid...

Intel Corporation is a well-known supplier of computer chips, boards, systems, and software building blocks. Assume the company recently reported the following amounts in its unadjusted trial balance...

Aaron's, Inc., and Rent-A-Center, Inc., are two publicly traded rental companies. They reported the following in their 2010 financial statements (in millions of dollars, except per share amounts and...

On January 1, 2012, Surreal Manufacturing issued 600 bonds, each with a face value of $1,000, a stated interest rate of 3 percent paid annually on December 31, and a maturity date of December 31,...

Hughie, Dewey, and Louie are equal shareholders in HDL, an S corporation. HDL's S election terminates under each of the following alternative scenarios. When is the earliest it can again operate as...

Birch Corp., a calendar-year corporation, was formed three years ago by its sole shareholder, James, who has operated it as an S corporation since its inception. Last year, James made a direct loan...

In year 2, Julio and Milani received distributions of $20,000 and $30,000, respectively, from Falcons Corporation. a. What amount of ordinary income and separately stated items are allocated to them...