The growth rate of the capital stock depends on the marginal product of capital. Country A has little capital, so the marginal product of capital is large, and the capital stock will grow rapidly. Country B has more capital, so the capital stock grows more slowly. Country C has so much capital that the capital stock decreases. “Convergence through the Accumulation of Capital” suggests an even stronger conclusion: all three economies will ultimately end up at the same capital stock and the same level of output—complete convergence. This conclusion is half right. If the three economies were identical except for their capital stocks and if there were no growth in human capital and technology, they would indeed converge to exactly the same level of capital stock and output. In Section 6.4 “Balanced Growth”, we look at this argument more carefully. First, though, we examine the evidence on convergence. Convergence or Divergence? Two Contrasting Pictures Convergence is a very pretty theory but is it borne out by the evidence? Figure 6.9 “Some Evidence of Convergence” shows the growth experience of several countries in the second half of the 20th century. These countries are all members of the Organisation for Economic Co- operation and Development (OECD) and are, relatively speaking, rich. Figure 6.9 “Some Evidence of Convergence” shows real GDP per person in these countriesrelative to the United States (the United States itself is the horizontal line near the top of the figure.) Figure 6.9 “Some Evidence of Convergence” does show some evidence of convergence. Countries with higher levels of real GDP person in 1950 tended to grow more slowly than countries with lower levels of real GDP per person. Poorer countries in this group tended to catch up with richer countries. Figure 6.9 Some Evidence of Convergence
The growth experience of 16 relatively developed countries, measured as real GDP per person relative to the level in the United States, shows considerable evidence of convergence.
Why Work with Us
Top Quality and Well-Researched Papers
Our writers are encouraged to read and research widely to have rich information before writing clients’ papers. Therefore, be it high school or PhD level paper, it will always be a well-researched work handled by experts.
Professional and Experienced Academic Writers
For one to become part of our team, thorough interview and vetting is undertaken to make sure their academic level and experience are beyond reproach, hence enabling us give our clients top quality work.
Free Unlimited Revisions
Once you have received your paper and feel that some issues have been missed, just request for revision and it will be done. In addition, you can present your work to the tutor and he/she asks for improvement/changes, we are always ready to assist.
Prompt Delivery and 100% Money-Back-Guarantee
All our papers are sent to the clients before the deadline to allow them time to review the work before presenting to the tutor. If for some reason we feel our writers cannot meet the deadline, we will contact you to ask for more time. If this is not possible, then the paid amount will be refunded.
Original & Confidential
Our writers have been trained to ensure work produced is free of plagiarism. Software to check originality are also applied. Our clients’ information is highly guarded from third parties to ensure confidentiality is maintained.
24/7 Customer Support
Our support team is available 24 hours, 7 days a week. You can reach the team via live chat, email or phone call. You can always get in touch whenever you need any assistance.
Try it now!
How it works?
Follow these simple steps to get your paper done
Place your order
Fill in the order form and provide all details of your assignment.
Proceed with the payment
Choose the payment system that suits you most.
Receive the final file
Once your paper is ready, we will email it to you.
You have had a hectic day, and still need to complete your assignment, yet it is late at night. No need to panic. Place your order with us, retire to bed, and once you wake up, the paper will be ready.
It does not matter the urgency of your paper, or the academic level, our team is ready to help you 24/7. Just contact us and all your academic needs will be sorted.
Admission Essays & Business Writing Help
A student is often required to write an admission letter requesting to be admitted in a certain institution. For you to be gain that admission in your dream institution, you must write a convincing letter. You can depend on our team for the best admission letters.
Academic writing is not just about getting information and throwing it all over. Our team will ensure you have a polished paper that is coherent and has a good flow of information. We also ensure the paper follows the correct formatting styles like APA, Harvard, MLA, Chicago/Turabian.
If our writers write a paper but you are not satisfied in one way or another, you can always ask for revision. This is totally free. Our writers and editors will revise your paper untill you are be totally satisfied. We as well offer revision for papers not done by our writers at a small fee.