Book: Techhnolgical Prigress And Growth Flashcards
Ehat does thevhnological growth depend on
Innovation and institutions
What fimentions are there to technological progress
Larger quantities of products, higher quality products, entirely new products and a greater variety of a product
What is the state of technology
How much output can be produced from a given amount of labor and capital
What is a convenient form of including technological progress in the production function
F(K,A*N) A is production so AN becomes efficient labor
What is another word for efficient labor
Labor in efficiency units
What does this function mean
I = (d+ga+gn)*K
This fuction calculates the level of investment needed to maintain the capital per worker.
Why is growth necessary when the population and effectiveness of workers increase
Because else there is less to go around because there is more mouths to feed and less that are required
What is the gtowth rate in steady state
gn+ga the combined rate of population and efficiency growth independent of savings
Can the economy permanently grow faster than the technological progress + population growth
No, increased savings only adds a bump upwards
What is the word for the steady state of an economy that grows with population and progress
A state of Balanced growth
Does capital and output both grow per capita when technology progresses
Yes, growing output means more to save which means more to invest
What determines the amount invested in R&D
The fertility if research aka how well ideas can become products as well as the appropiabillity of the results aka if others can steal the idea
What is the time inconsistency of intellectual property protection
The dilemma that no protection will lead to little research but that to much protection will prevent people from building on the research and making it more available
Why do poorer countries have lower patent protection
Because they are not on the technological frontier and thus are more users than producers of ideas, thus they do better without intellectual property laws as they can imitate innovation without paying royalties
What is the main institutional protection that economists suspect is the key to growth
Property rights. If things are stolen through nationalization, corruption or simple unpervented theft people have little incentive to invest
