曼昆宏观经济学原理第五版英文讲义Chapter25

2011-09-271ChapterProduction and Growth25

Economic Growth Around the World•Real GDP per person–Living standard–Vary widely from country to country•Growth rate–How rapidly real GDP per person grew in the typical year

•Because of differences in growth rates–Ranking of countries by income changes substantially over time

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TableThe variety of growth experiences1Country Period Real GDP per personat beginning of periodReal GDP per personat end of periodGrowth rate(per year)

JapanBrazilChinaMexicoGermany1890–20061900–20061900–20061900–20061870–2006$1,408 7296701,0852,045$33,150 8,8807,74011,410 31,830 

2.76%2.392.342.242.04

3y

CanadaArgentinaUnited StatesIndiaUnited KingdomIndonesiaBangladeshPakistan1870–20061900–20061870–20061900–20061870–20061900–20061900–20061900–2006

2,2242,1473,7526324,50283458369034,61015,39044,260 3,80035,5803,9502,3402,5002.041.881.831.711.531.481.321.222011-09-272Productivity: its Role and Determinants•Productivity–Quantity of goods and services–Produced from each unit of labor input•Why productivity is so important–Key determinant of living standards–An economy’s income is the economy’s output

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Productivity: its Role and Determinants•How productivity is determined–Physical capital•Stock of equipment and structures•Used to produce goods and servicesHitl–Human capital•Knowledge and skills that workers acquire through education, training, and experience

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Productivity: its Role and Determinants•How productivity is determined–Natural resources•Inputs into the production of goods and services•Provided by nature, such as land, rivers, and depositsmineral 

–Technological knowledge•Society’s understanding of the best ways to produce goods and services

62011-09-273•Population growth & Standard of living growth –is it sustainable?•Argument–Natural resources ‐will eventually limit how much world’seconomiesAre natural resources a limit to growth?the worlds can grow

–Technological progress ‐often yields ways to avoid these limits

–Improved use of natural resources–Recycling

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•Are these efforts enough to permit continued economic growth?•Prices of natural resources–Scarcity ‐reflected in market pricesNtliAre natural resources a limit to growth?–Natural resource prices•Substantial short‐run fluctuations•Stable or falling ‐over long spans of time–Our ability to conserve these resources•Growing more rapidly than their supplies are dwindling•Market prices ‐no reason to believe that natural resources are a limit to economic growth8

Economic Growth and Public Policy•Saving and investment•Raise future productivity–Invest more current resources in the production of capital–Trade‐off•Devote fewer resources to produce goods and services for current consumption

92011-09-274Economic Growth and Public Policy•Diminishing returns and the catch‐up effect•Higher savings rate–Fewer resources –used to make consumption goods–More resources ‐to make capital goods–Capital stock increases–Rising productivity–More rapid growth in GDP

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Economic Growth and Public Policy•Diminishing returns and the catch‐up effect•Diminishing returns–Benefit from an extra unit of an input–Declines as the quantity of the input increases

•In the long run; higher savings rate–Higher level of productivity–Higher level of income–Not higher growth in productivity or income

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FigureOutputper WorkerIllustrating the production function112. When the economy has a

high level of capital, anextra unit of capital leads toa small increase in output.

12Output per WorkerThis figure shows how the amount of capital per worker influences the amount of output per worker. Other determinants of output, including human capital, natural resources, and technology, are held constant. The curve becomes flatter as the amount of capital increases because of diminishing returns to capital

11. When the economy has a low level of capital, anextra unit of capital leads to a large increase in output.